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Title: Start your on business
Description: Friends, in this you will learn how a business is done and what problems can we face in it, by improving all this, you can grow a good business.
Description: Friends, in this you will learn how a business is done and what problems can we face in it, by improving all this, you can grow a good business.
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No part of this work may be reproduced or stored in an information retrieval system (other than for
purposes of review) without the express permission of the publisher given in writing
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First published in 2006
Second edition 2009
First published in electronic form 2009
© 2009 Paul Power
British Library Cataloguing in Publication Data
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ISBN 978 1 84803 338 2
Produced for How To Books by Deer Park Productions, Tavistock
Typeset by PDQ Typesetting, Newcastle-under-Lyme, Staffordshire
NOTE: The material contained in this book is set out in good faith for general guidance and no liability can be accepted
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...
For Brian
v
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CONTENTS
Preface
xi
1
So You Want to Start Your Own Business?
My story
Prepare yourself for some difficult times ahead
The five secrets of being a successful entrepreneur
Before we go any further, have you got what it takes?
So – have you got what it takes?
To do list
1
1
2
3
8
9
11
2
Great Business Ideas Start at Home
12
Why do so many businesses start from home?
13
Are all the best ideas already taken?
13
Where to get great ideas
13
Keeping a notebook
18
Evaluating your ideas
18
Your resources
19
Your lifestyle
20
Feasibility
20
Hobby business ideas
23
Don’t limit your ideas to your hobbies or what interests you 26
A great idea should be at the core of your business
28
Summary
29
3
What’s Involved in Starting Your Business
Deciding on a name for your business
Opening a business bank account
Creating a business identity
Your insurance company
Local authority
Where to base your business
Complying with the law
Health and safety
Data Protection Act
Summary
30
30
34
37
42
42
43
45
46
46
48
4
Research: The Doorway to Success
Why businesses fail
49
50
vii
S
TART AND
R
UN A
B USINESS
FROM
H OME
Researching your idea
Market research
The cost of starting a business
Who is going to finance your new venture?
Dealing with slow and non-payers
Writing a winning business plan
Summary
51
55
58
60
61
62
65
5
Sales: The Beating Heart of Your Business
Selling – there really is nothing to fear
You don’t have to be a sales expert to sell
The three golden rules for selling anything to anyone
Overcoming objections
Closing techniques
Mastering the three Ps of selling
Five ways to turbo-boost your sales
Summary
66
66
66
68
77
82
86
89
99
6
The Essentials of Shoestring Marketing
Why is marketing so important?
Learning from larger businesses
Why advertising doesn’t always work
Ten ways to market your business with a small budget
Press releases
Sponsorship
Media stunts
Making more use of your business cards
Local networking groups
Self-employed sales agents
Leaflet drops
Giving talks to groups and other businesses
Writing for magazines and newspapers
Summary
100
100
100
101
104
109
113
114
115
117
118
119
121
122
123
7
Deciding Where to Sell From
Be exposed to your target market
Be affordable
Allow a degree of flexibility
Be secure and safe
Choosing where to sell your goods
Summary
125
125
126
126
126
126
140
viii
C
ONTENTS
8
Your Business on the World Wide Web
Creating a website for your business
Marketing your website
Staying ahead of the competition
How much time do you spend on your website?
eBay
Summary
141
142
148
156
165
168
169
9
Traditional Retailing
Home-based forever, or will you take to the high street?
Traditional retail products
Shop
170
170
172
183
10
The Mechanics of Starting Your Business
Deciding on a trading identity
Registering for VAT
186
186
197
11
Ten Great Business You Can Run from Home
Start your own cleaning business
Start your own gardening business
Starting your own childminding service
Start your own pet sitting service
Start your own greetings card business
Start your own home tutoring agency
Start your own bed and breakfast
Start your own catering business
Start your own Internet business
Start your own antiques business
203
204
206
208
212
215
218
221
226
230
235
Index
240
ix
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PREFACE TO THE SECOND EDITION
Welcome to the second edition of this book
...
This gave rise to the first edition which was titled The Kitchen Table Entrepreneur
...
Today, none are located in my kitchen,
which is probably just as well, given the high number of visitors to one of our most
successful enterprises, The Littlehampton Dutch Bike Shop
...
If you want to start
your own business, travel light
...
Instead think big, but start
small
...
For example, it always makes me laugh when I overhear someone discussing with
another that they’re about to start their own business (or in some cases, already have)
...
But as you
will soon discover, if you haven’t already, as soon as you start your own business, or
announce your intention to do so, you’ll be bombarded with all sorts of free advice,
usually from people who – without wanting to sound too unkind – probably don’t
have a clue! Their free advice will usually include such gems as: ‘make sure you get
yourself a good accountant’, or another favourite, ‘be careful what tell you tell the tax
people or they’ll take everything you own
...
If only it was
that simple
...
Think about this for a moment
...
All this comes before you should even think of hiring accountants, tax experts and so
on
...
Without cash,
neither you nor your business can survive
...
Whilst not wishing to put you off entirely, please don’t underestimate the challenge
ahead
...
The difficult part is to make
it successful
...
However, the good news is
that once you have mastered a few of the basic concepts, you’re well on the way to
success
...
Many of the most successful entrepreneurs have had no
training and in my opinion this is why they are so successful
...
Since writing the first edition, I’ve had lots of correspondence from would-be
entrepreneurs asking for my advice on their ‘great idea’
...
The fact that I haven’t solicited their correspondence or wish to hear their ideas is
beyond them
...
So while I
welcome your correspondence, please note that I’m not a business consultant ready
and waiting to sell you my services
...
I’m neither and I certainly have no ambitions to be the latter
...
And if the truth be told, I couldn’t stand working for
bosses who I wouldn’t trust to lead me safely across the road, let alone determine my
future
...
Making millions doesn’t interest me
...
No matter how much wealth you
accumulate, you won’t be able to take it with you
...
Indeed, if that’s your ambition,
then great
...
But that’s not my aim and ambition
...
xii
P
REFACE
Everything I share with you in these pages is information I came across the hard way
...
It shouldn’t have
come as a great surprise to me when my first business venture crashed soon after
starting
...
But I was surprised, hurt
even, that I could have possibly failed
...
How many times have you looked at someone and thought, if they can do
it, so can I?
Well, the good news is you can
...
Dangerous stuff
...
Obviously it would make
sense to learn how to drive first
...
Next
you have to master taking directions, then reading the road signs and so on, until at
last you’re really ready to drive on your own
...
No book, however
comprehensive, can cover all eventualities
...
The rest is up to you
...
But at least you’re
getting the chance to decide what’s right for you and your circumstances
...
I hope through sharing my experiences and those of others that by the end of it, you’ll
have more knowledge than I had when I first started
...
Let me know how you get on and beware of ‘free advice’ and advice from business
gurus whose only business is advising other business people
...
For example, if they know so much about how to run a
successful business (other than one offering others advice) how come they’re not
acting on the advice they you want you to pay them for and making their own
fortunes?
Good luck!
Paul Power
xiii
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1
SO YOU WANT TO START YOUR OWN BUSINESS?
My story
I can still remember the day way back in 1998 when I decided that there must be
more to life than seemingly endless monthly appraisals, unachievable monthly
targets, vacuum-packed sandwiches, foul-tasting coffee, uncooperative lifts, difficult
people, and management I truly detested
...
I’d like to open this book by saying that nothing
beats the feeling that came when I told my bosses where to stick it and the liberating
feeling of swapping days in fluorescent hell for the altogether more preferable
experiences of running my own successful business, and enjoying more free time
while earning truck loads of cash and being the envy of friends and ex-colleagues
...
The joy of telling an employer where to stick their lousy job is, sadly, short-lived
...
Why am I telling you this? Because starting your own business is going to be, with the
exception of coping with a life-threatening illness, one of the most challenging and
difficult things you’re ever likely to embark on
...
But I don’t want to start you off under the impression that it’s all
plain sailing
...
Neither is starting a business, for those who crave security,
and want assurances that everything will work out well in the end
...
So if you’re the type of person who
avoids risk at all costs, then my advice would be to stay employed, or unemployed,
as the case might be
...
Notice how I haven’t used the
words ‘lucky few’
...
Indeed luck has nothing to do with it
...
If there is such a thing, then I believe that you make
your own luck
...
Then you can sit back and wait for Lady
Luck to come knocking on your door
...
If you’re prepared to go for it, then commit to the hard work ahead, be prepared
for the failures, disappointments, let-downs, bureaucracy and fear, and start to enjoy
the massive benefits that will come when your start your own business
...
Sadly, it wasn’t to last
...
Despondent, I was forced to return to the ranks of
the employed
...
Even vacuum-packed sandwiches, fluorescent lighting and uncooperative lifts all
seemed like a dream compared to my new job where my circumstances were far worse
than before
...
I passed the time working for others as best I
could
...
But then one day I realised that I was
once again stuck in that nine-to-five, Monday-to-Friday routine and, despite three
promotions and the fact that I was now earning more than I had been in my previous
job, I remembered why it was that I had had to return to employment
...
On the day I left this job, I made a promise to myself that I would never again work
for someone else
...
, I would never again
return to being an employee
...
2
S
O
Y
OU
W
ANT
TO
S
TART
Y
OUR
O
WN
B
USINESS
?
Today, my businesses are successful and I enjoy every minute of my working life
...
Self-employment is not for everyone
...
Undoubtedly there are those folk who will pick up this book and, once they recognise
how tough the road ahead can be, will decide they’re better off where they are now
...
Far better they realise, after the relatively small investment of
buying and reading this book, that self-employment isn’t for them than to discover
later when they have lost everything that they weren’t really cut out for it after all
...
As I’ve said, it can be a difficult
road, often long and seemingly unending
...
Let’s start by looking at some of the attributes that make successful entrepreneurs
different from those who fail
...
Develop self-reliance
...
Work with written goals
...
Develop a ‘can-do’ attitude
...
Maintain a sense of humour
...
Keep your ‘own counsel’
...
Without exception, what they all have is an acute sense of self-reliance
...
They also accept fully that they alone are responsible for their own future
...
Yes, their businesses are led by events that are often outside of
their control
...
WORK WITH WRITTEN GOALS
I wish I had discovered this secret earlier
...
For when you set a written goal you commit
to achieving whatever it is you want, which could be anything from simply
spending a half an hour a day researching your new business to setting a start date
for your new business
...
Imagine for a moment the forces that begin working on a
conscious and unconscious level, moving you towards this goal
...
o
Break this list down into smaller achievable goals
...
o
Create a written timetable for these things
...
You need to work to a timetable so you can
achieve your goals
...
It may be that you haven’t given
yourself a realistic timescale to work within
...
As you can see, when you set written goals you will go from simply thinking or
dreaming about doing something to actually working to a set, written goal
...
DEVELOP A ’CAN-DO’ ATTITUDE
Similar to developing a real sense of reliance, successful entrepreneurs also have a
real ‘can-do’ attitude
...
You’ll find them
heading up local community campaigns, tackling problems head-on, and refusing
to take ‘no’ for an answer from anyone
...
They are the ones that when there’s a problem get it sorted
quickly without fuss or insult
...
They refuse (whatever the circumstance) to be told that whatever it is they’re about to
do is impossible
...
Picture if you will all
those from the ‘it-cannot-be-done’ camp, arguing and forecasting impending danger
...
But their achievement brought world-wide admiration, and
at the time ushered in the reality that soon ordinary people could be travelling from
America to Europe by aeroplane
...
If
you can only achieve results where the odds are stacked in your favour and success is
guaranteed, you might as well stay doing whatever it is you’re doing now
...
It’s not so much what happens to you in this life, but how you react to it
...
Guard against listening to the
floods of people who’ll tell you whatever it is you’re about to do won’t work
...
MAINTAIN A SENSE OF HUMOUR
I’d love to tell you that I’ve laughed at each and every one of my many shortcomings
and numerous failures, but I won’t lie to you
...
Today I’m getting better at it, but I firmly believe that if
I had realised earlier on in my self-employed career that being able to laugh at
yourself is as important as paying your rent or mortgage, I believe I would have
achieved more and far quicker
...
The boating lake
Some time ago I ran a boating lake in our town
...
We’d open the lake
at Easter and it would close again in early September when the children returned to
school
...
One August bank holiday, I woke up early on Saturday morning to visit the lake and
ensure that everything was clean and ready to go for later in the morning
...
As I walked the short distance from the house along the
sandy beach to the lake on what was a beautiful morning, I couldn’t help but think
how lucky I was
...
When I caught a glimpse of the lake in the distance, I knew right away something was
wrong
...
I panicked
...
It
certainly wouldn’t have been the first time that one of our boats had been stolen
...
Relieved, I continued towards
the lake
...
Indeed something seriously wrong, but
I couldn’t yet put my finger on it
...
All of the water had drained away!
The lake was completely empty save for a few small puddles of water, totally drained
...
Here we were on the busiest bank holiday of the year
...
Ask yourself, what would you do? Well, I got angry
...
And even angrier
when some people began to come up to me with all sorts of petty worries
...
Replying sarcastically that we would obviously be opening
in a few minutes
...
’
‘Don’t worry, we’ll let you have a boat half price’, I told him, which as you can
imagine didn’t help the situation
...
It was a truly
hilarious situation, as was pointed out to me at the time by one of the local business
owners who advised me to see the funny side of it
...
‘After all, you getting angry isn’t going to fill the lake up,
is it?’
6
S
O
Y
OU
W
ANT
TO
S
TART
Y
OUR
O
WN
B
USINESS
?
He was right and I was wrong
...
You really do need to be willing to see the funny side in
every calamity
...
Far
from it
...
But it’s far worse, wouldn’t you agree, to lose your
takings and be entirely miserable and angry?
KEEP YOUR OWN COUNSEL
I cannot stress this one enough
...
Sharing your plans with everyone else really is disastrous
...
When I decided that I’d had enough of working for someone else for a living, I had
already given a lot of thought as to what sort of business I was going to start and run
...
I believed entirely in this business idea
...
All I had to do was replicate their idea
...
As their
business was not even in our area, I wouldn’t be competing with them
...
Then one night I was out for dinner with some friends and relatives, none of whom
were their own boss
...
During dinner I shared my ideas with the gathering who,
it has to be said, were mostly horrified at my plan
...
I was overrun with ‘What ifs’ and all sorts of well-meaning advice
...
When I discussed my plans sometime later with an already successful person who’d
started a similar business they advised me against my new plan and told me I should
stick with my original idea
...
7
S
TART AND
R
UN A
B USINESS
FROM
H OME
Eventually I made the decision to go with my revised business idea, thereby turning
my back on this successful entrepreneur’s advice
...
So here’s the lesson, dear reader – keep your own counsel
...
So with the best
will, keep your ideas to yourself
...
No one else
...
Have you ever been to a party where you’ve met a professional such as a
doctor, architect, engineer, dentist, or similar who asked you for your advice on how
they should treat their patients, design their buildings, or make their machines?
Of course not
...
No one but you is really
qualified to understand what’s involved in starting your business, let alone qualified
enough to offer advice
...
It would be silly in the extreme if I was to assume that every person who picked up
this book, or indeed any other on the subject of starting your own business, was
already well-endowed in the ‘skills’ department
...
But don’t despair
...
Simple as that
...
So before
we go any further, I want you to take a few minutes to undertake a stocktake of your
lifestyle
...
Lifestyle questionnaire
1
...
Are you motivated enough to be able to work alone, at home, solidly, without
resorting to phoning friends, watching day-time telly, or spending hours surfing
the Internet?
3
...
If you’re living with a partner, husband, or wife, have you discussed your
proposals and the implications of what you’re planning and how these will affect
both your lifestyles?
5
...
If your business venture fails (and lots of first ones do), would you be able to cope
and get back on track again?
7
...
Can you keep going under the kinds of circumstances where others would pack up
and clear out?
By reading through these questions you should be able to start to see the sort of
personality that’s more suited to being an entrepreneur
...
Don’t work under the false assumption that everything will be alright on the night
...
In fact, usually what can go wrong will go wrong, as well as a
host of other unforeseen problems
...
Why? I believe that once again when things go wrong
it’s not down to bad luck
...
Indeed, if such a thing as luck does exist, I am
certain you make your own luck
...
Just between you and me
...
Remember, when
you work for yourself you’re not going to have those others in the office, or factory, or
on the shopfloor that you can have a good old chinwag or moan with
...
In my experience, none of these people will be really interested in how you feel about
things
...
And why not? After all, your job is simply to satisfy their needs
...
All they will be concerned about
is whether you have any debts with them (be this loans or commitments like rent)
and whether you will be able to honour them
...
The sooner you understand that you will be on your own here, the better
...
Here’s an interesting experience that happened to me when I was doing a radio
interview promoting the first edition of this book
...
I get to
go all around the country chatting to interesting, would-be entrepreneurs
...
However, on one show, I took a call from an
extremely irate lady who berated me for suggesting through my book that anyone
could turn a hobby into a successful business
...
Once she’d calmed down, I asked her what did she believe was the biggest factor in
her daughter’s business failing
...
Note, the two parties she blamed:
l
...
2
...
What’s telling about this lady’s daughter is that her business hadn’t had a hope to
begin with
...
I’ll take you through what’s involved in
negotiating for a shop premises later, but suffice it to say it’s a bit like renting a flat or
house
...
Similarly you will know in advance your bank charges, loan repayments, and so on
...
Later
on, I’ll take you through the research you’ll need to do before signing anything or
indeed deciding to start your business
...
Instead they have rushed into a half-baked
idea without any real idea of how they were going to make it a success
...
So ask yourself now – are you willing to take responsibility for your future? If you are,
and I hope you are, great
...
At least you can walk away now without losing
any money, your home, your relationship, and so on
...
Ultimately, the rewards will change
your life for the better
...
To do list
1
...
This
could be anything, from setting a deadline by which you will have finished reading
this book to choosing a date for starting your business
...
From now on start working on developing your self-reliance
...
If you’re the
type of person who loves to be praised at work, then make a conscious effort to
stop seeking others’ approval
...
They live their lives on their own terms
...
Learn to laugh more and not get worked up about things
...
Whatever you do, don’t take
yourself too seriously
...
American computer magnate, Steve Jobs, the founder of Apple Computers, began
this business in his bedroom and initially traded from his garage
...
Karan Bilimoria, the entrepreneur behind the hugely successful Cobra Beer brand,
had prior to launching this dipped his toes in a variety of import businesses until he
finally found the right opportunity with this now famous drink
...
He used an elderly, and often unreliable battered green Citroen 2CV to carry
around his initial stock
...
All of
this was achieved initially from his kitchen table and delivering from the back of an
elderly car
...
And after an difficult initial trading period
that would have seen most fair weather entrepreneurs folding their tents and seeking
once again the shelter and convenience of paid employment, the trio proceeded to
build one of the country’s most innovative and sought after drinks brands
...
Glasses Direct is now a household name
and trades from offices at Charlton park, Malmesbury
...
Although the Body Shop began life
as a small shop in Brighton it was initially a home-based idea, started up by Anita as
she wanted to sell products that hadn’t been tested on animals or otherwise brought
about by harming anyone
...
Once again, the idea and business began at home with the initial
intention of creating a part-time business
...
Whether this is true or
not I’m not sure, but what is remarkable is that he founded his business from home,
and later on ran his empire from a houseboat moored in London
...
Also, and let’s be brutally honest at this point, the reason most business empires
initially trade from home is that their founders simply haven’t got the necessary
resources to start anywhere else
...
A typical
home-base entrepreneur will have little or no money, can either be in debt or
previously bankrupted by a failed venture, yet will still believe enough in themselves
and their ideas to continue with their global dream – which inevitably can only begin
from their kitchen table
...
I can guarantee you that nearly all the ventures you
come across will at one time have been home-based
...
You may sit there thinking, if only I had
come up with the idea for an online social networking site like My Space, Bebo, or
Friends Reunited
...
But
don’t despair
...
Where to get great ideas
It’s vital to explore all of the possibilities that present themselves
...
13
S
TART AND
R
UN A
B USINESS
FROM
H OME
By far the most difficult way of coming up with ideas is to sit down with a blank piece
of paper and try to think of things
...
LOOKING FOR IDEAS WHILE ENJOYING YOUR HOBBY
By far the easiest, and I believe the most enjoyable way of getting your creative juices
flowing is to get out there and throw yourself into your hobby
...
You see, very often the best business opportunities lie in what we
don’t like about something
...
In the past,
all you could buy were short leads that meant your dog often pulled one way
and you the other
...
And if
you don’t want your dog to walk any further you simply apply a brake using
your finger
...
But why did it take us so long to get this simple tool?
I’m convinced the reason is that those who manufacture dog leads never actually
walked a dog themselves, because the only person who could have come up with such
a product is someone who has long suffered the frustrating limitations of the
traditional dog lead
...
A much-needed improvement
for gardeners came about when one garden tool manufacturer introduced a
new range of gardening tools
...
Again, just like the modified dog lead, the reason these tools became overnight
successes was they were designed by people who gardened, who believed their
favourite pastime could be made more enjoyable and less painful by adding a few
thoughtful modifications to the original products
...
For example let’s say you’re a
keen walker and you find the maps you’re using difficult to store comfortably when
you’re walking, or hard to keep dry in the rain
...
o
You could design a map that suits the particular needs of your hobby, and either
publish your own maps or approach map companies with your ideas on how
their product can be improved, and offer your services as a consultant
...
o
If one is already available elsewhere in the world you could apply to the
manufacturers for a distributor’s licence to sell the product here in the UK
...
Identify the problem and find an easy way of solving it
...
In its
simplest form it involves you sitting down and writing down every idea that comes
into your head on a given subject
...
Although an extremely effective way of generating ideas, if you’re new to this
technique it might take you a little time to get used to it
...
Stick with it and I promise it’ll pay dividends
...
‘Rules’ for brainstorming
1
...
2
...
3
...
4
...
5
...
This technique works better when you’re
fresh and in a positive frame of mind
...
On a large, blank piece of paper write down a number of key words associated
with your hobby
...
2
...
As soon as you get an idea down on paper move on to
the next one
...
Use pictures to generate ideas
...
4
...
Six great questions to get going on are: How?,
Why?, Where?, When?, Who?, What?
...
Don’t take this too seriously
...
For example if you’re hobby is water-skiing, imagine the Queen learning to
water ski with Prince Phillip being towed behind in a doughnut
...
Use a stopwatch to time your five-minute session and as soon it ends, STOP
...
But I stress that just like any other worthwhile
technique it takes time and patience before you get the best out of it
...
Take a break from it and come back to it later when you’re fresh and make
sure you use all the techniques above
...
It’s amazing what
looking at just one picture can do for your imagination
...
Browse through them and you’ll start to see common moans, usually directed at
manufacturers and suppliers who are perceived as failing to satisfy their customers’
needs
...
Most large businesses work on economies of scale and will only introduce a product
or service if they’re sure there’ll be a large enough demand to justify full-scale
production
...
In my own gardening business I regularly read online forums and the letters in
gardening magazines and have found it to be enormously helpful when planning
marketing campaigns and finding out what customers really want
...
From this information I launched my
first gardening course – How to plan your first garden which I run in
springtime
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But beware of sharing your top tips with anyone else
...
To his surprise, and I believe understandable
annoyance, he later saw an exact replica of his device on sale at the Southampton Boat
Show
...
The company in question is one of the largest in the world and is selling thousands of
these gadgets worldwide without paying a penny to the original inventor
...
To do this you’ll need to get specialist advice from a solicitor
who deals with this sort of thing
...
So it’s essential to
record everything you come up with in a notebook
...
I use a small pocketsized notebook when I’m out and later transfer my notes into my master notebook
when I get home
...
This way there’s less chance of you losing your information
...
o
Record all your ideas in your notebook, even those you don’t like
...
For example, names and addresses of
businesses that make things you might need for your business etc
...
o
Using your PC as a notebook is fine
...
Evaluating your ideas
As someone once said, great ideas only work if you do
...
Neither should you get frustrated if some of your ideas seem to be too far-fetched at
this stage
...
Some you can open
today; others may have to wait until you have sufficient resources to put them into
action; and a few doors you won’t be able to open at all until you do a bit more
research
...
Generally there are three areas you’ll need to consider:
1
...
your lifestyle
3
...
Your resources
However brilliant your idea may seem you will only be capable of starting it if you
have adequate resources
...
It’s no good starting something and then
finding that you haven’t got what it takes to continue with your venture
...
SKILLS
Unless you’ve got enormous financial backing for your venture you’re probably going
to have to do everything yourself
...
There are lots of places to get help from
...
Regardless of your experience you should contact your local Enterprise Centre where
you’ll find a wide range of courses specifically run for people starting their own
businesses with little or no previous experience
...
Your lifestyle
Ignore this one at your peril! Starting your own business is one of the most exciting
things you can do
...
You’ll
also enjoy the enormous satisfaction that comes with building and securing your own
future
...
If, like many people, you’re the type of person who values your free time and never
wants to work weekends, and the business you’re planning to start will only work at
weekends, then obviously you have a problem
...
Just
imagine waking up every morning with a fresh breeze blowing through your
chocolate box rose-adorned cottage
...
Unfortunately the reality is something different and there will undoubtedly be
occasions where running this type of business means you have little time to enjoy
where you’re living
...
If your business idea will only
work at times when you don’t want to work at it then find another opportunity
...
Feasibility
Before you invest time and money in any business idea you must be sure that what
you’re proposing is feasible
...
We’ll also look at formulas for calculating how much you
need to charge for your products or services
...
Test your idea on a best
scenario basis followed by a worse case scenario
...
So you work out very roughly what you’re hoping to charge your customers, taking
into account all the costs you’re going to incur
...
I stress you’re making rough calculations here
...
Just try to be as realistic as you can, being generous with your
allowances for expenditure
...
Armed with some rough figures you’re ready to work out three useful and very
difficult scenarios
...
Best case scenario
...
Worst case scenario
...
Most likely case scenario
...
What have you come up with?
For example, if the net amount you’re hoping to earn per customer, per holiday, is
£80, and given your resources in terms of time available etc, the most holidays you
can expect to sell is 100, then that means at the best case you’ll earn £8,000
...
However if
your figures are disappointing it doesn’t necessarily mean that your idea is
unworkable
...
Worst case scenario
Don’t forget to calculate a worst case scenario
...
Obviously this is the sort of scenario we all hope will never happen and provided you
undertake sufficient market research before you invest any of your money, it should
never arise
...
For example, who could have foreseen the
impact that the foot and mouth crisis would have had on local tourist business? Many
of the walking holiday companies went out of business because most of the
countryside in their areas was closed to the public
...
Thankfully this sort of scenario is rare, but it’s worth taking a bit of time to ask
yourself what would happen if the business you’re planning to start had no
customers
...
Most likely scenario
All being well this is the scenario you most likely expect to achieve
...
Again if the figures you come up with during this scenario fall below what’s needed to
make your idea worthwhile then either re-work your idea or start afresh
...
Not only is it a brilliant way of coming up with new ideas, but you’re
also starting to think like an entrepreneur
...
It’s always interesting
to look at what other entrepreneurs are doing
...
Your findings
Regardless of how brilliant, innovative or otherwise your idea might seem to be, it
must be:
o
capable of making enough money to make it a worthwhile investment in terms
of your time and money
...
The time spent working out some rough figures and projections at this early stage is
time well spent and will highlight the strengths and weaknesses of your idea
...
Now is
the time to find that out
...
Hobby business ideas
Most hobbies can find an opportunity somewhere in the following ten business models
...
Don’t
dismiss anything immediately
...
Then in the next few
days, whenever you get a moment, start working through this list and seeing how
many businesses you could start from your hobby
...
They don’t risk their futures on one venture, but rather have a number of
smaller independent businesses on the go at any one time
...
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SALES BUSINESS
Probably the most common of all business models – this is where you either buy in a
product wholesale or make your own product and then retail it
...
SERVICE BUSINESS
A service business is one where you either sell your own skills, for example a gardener
offering a gardening service, or you offer a business where you employ others and
market their skills
...
You could also consider employing others
...
For
example in our gardening business we employ people to a do a range of things
including gardening, teaching and designing
...
TUITION BUSINESS
Regardless of what hobby you’re interested in, there will always be new enthusiasts
joining who will want to find out as much as they can about their new hobby
...
Examples of tuition businesses include organising and running creative writing
courses, fishing courses, cookery courses, flower arranging and craft making courses,
candle making courses
...
Provided you are a skilled organiser and capable of advertising and marketing your
courses you can employ teachers or those with specialist knowledge to give your
courses
...
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ACTIVITY BUSINESS
Hobbies offer unlimited business opportunities for anyone with organisational skills
...
The possibilities are endless here and the great thing about this type of business is that
all you really need to get started is your kitchen table
...
All you need is to find suitable hotels or venues to run your
courses from, negotiate the best deal you can with the proprietors, and organise your
holidays
...
It is particularly suitable if your hobby involves photography, painting, flower
arranging, crafts, candle making etc
...
WHOLESALING
Rather than simply retail products, you could also become a wholesaler
...
There are a number of international trade fairs held annually where you can meet and
find businesses looking for agents for their products
...
Products that the
larger businesses will ignore as they don’t believe they can sell them in large enough
quantities to justify their expenditure
...
Revenue comes from charging entrance fees, a portion of which then goes as prize
money
...
INFORMATION SHARING
Information sharing business is where you sell information regarding your
particularly hobby or interest
...
o
Publishing your own guide books or annual directories listing all the
information about your particular hobby
...
HIRE BUSINESS
Whatever your hobby, the chances are there will be something you can rent out to
other hobby enthusiasts
...
A hire service can be an excellent way of generating additional revenue for a
traditional sales business
...
Although lots of successful business ideas come from hobbies, don’t limit your
thinking to only those areas you’re knowledgeable in
...
Similarly, when Karan Bilimoria began his Cobra Beer company he wasn’t a brewer
or had any previous knowledge of the drinks industry or Indian restaurant market
...
Neither had Richard Branson any previous experience of running an airline when he
began Virgin Airlines, providing flights across the Atlantic
...
Her previous business experience included running her
own guesthouse and upmarket cafe´, neither of which, as she said herself, were really
successful
...
At least that what non-entrepreneurs will usually tell you
...
The actual reality is somewhat
more mundane
...
It’s more a
case that the successful entrepreneur will continue to slog away, enduring failure after
failure, setback after setback, until such times as they hit on the right idea at the right
time
...
Be prepared for setbacks
...
When you consider that according to the banks only one in every four new businesses
survives the first year of trading, and from then only one in every four will actually
survive beyond their third year trading, you don’t need me to tell you that the odds of
you being successful are fairly much stacked against you
...
My belief is that many business failures could have been avoided had the
entrepreneur given enough thought to their initial idea
...
The menu
displayed in the window is handwritten, prices are cheaper than cheap, and the lady
serving behind the counter looks like death has taken a break
...
They seemed to believe they were
going to be the next McDonalds
...
Yes,
they’re offering cheap food
...
And those that are offering cheap fare already enjoy a
loyal following built up over many years, which means there’s no incentive for
anyone to visit our cheap and cheerful friends except perhaps the bailiffs
...
A successful business is one that doesn’t follow the crowds, but instead carves
out a nice little niche for itself before the big boys try to move in on that market
...
Some ideas you will have might look good
initially, but make sure you work your way through all of these before starting your
business
...
I’d be embarrassed to tell you
(but I will anyway because it makes for a better read) that when we first started our
business we only had one model of a Dutch bike available and that could only be
supplied in one colour
...
When people ask me how I came upon the idea to import Dutch bikes into the UK, I
tell them that when I wanted to buy one for myself I couldn’t find a single outlet
selling them
...
Try to remember for a moment all the times you’ve tried to buy something you
simply couldn’t get hold of, but still dearly wanted
...
Don’t think small
items that cost a few pence
...
The area of mass
retail isn’t suitable for us kitchen table entrepreneurs
...
Think instead of the things these multi-retailers aren’t providing,
or won’t currently sell, as it’s too specialist, too niche for them
...
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Summary
1
...
2
...
3
...
If your dream is to run a
florists’ shop, but you can’t afford to buy one or take on a shop lease, then be
prepared to start with a bucket, selling door-to-door
...
These are the main areas that you need to consider when starting your business:
o
o
o
o
o
Naming your business
...
Complying with the law
...
Deciding whether or not to register for VAT
...
My advice is for you to
read Chapter 10 when you feel ready for it
...
Deciding on a name for your business
Choosing the right name for your business is important and is something you need to
really think about because whatever name you give to your business will need to
create the right image for potential customers
...
You could call
your business simply ‘Painting Holidays in Cornwall’, but the obvious problem here
is that it doesn’t give any more information than the obvious
...
Or at would-be
artists looking for a luxury break, which includes painting tuition and
pampering?
o
Where in Cornwall are your holidays based?
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What’s your own painting expertise?
o
Are painting holidays the only holidays you’re intending to run or will you
include other holidays at some future date, such as creative writing courses?
Obviously you are never going to be able to answer all of these questions with the
name of your business, but you can improve on the initial name by making it less
restrictive and more imaginative
...
The difficulty here is that anyone interested in learning how to paint might get the
impression that this business runs holidays for seasoned painters and not beginners,
while experienced painters might find the word ‘holiday’ a turn off
...
So what’s the alternative? You could go for something like ‘Creative Breaks
Cornwall’
...
You could also include a strap line on your business advertisements, websites etc:
Creative Breaks Cornwall
Discovering the artist within
If and when you decide to offer other types of holidays your business name is not
going to hold you back
...
Take Amazon as an example
...
Yet everyone knows they retail
books
...
The advantage of choosing a name like Amazon is that not only is it easy to
remember and intriguing, but the name doesn’t restrict the future growth or diversity
of the business
...
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Be imaginative and make sure whatever name you choose doesn’t restrict
your future business by pigeon-holing you into something that’s too
narrow
...
By this I mean
something like Green Fingers Gardening Company or Joe’s Bloomers, or Harriet’s
Heavenly Pastries etc
...
BARGAIN HUNTING
The exception to the rule is when you’re absolutely certain that what you’re offering
is going to be cheaper than offered by most other retailers, you should include this
information somewhere in your title
...
The Fisherman’s Warehouse
Cheapest tackle online
Choosing to use a word like ‘warehouse’ as opposed to ‘shop’ suggests large quantities
at low prices
...
Some businesses are ideal for this sort of personalisation, particularly if they involve
looking after something that your customer treasures, like children, pets, gardens etc
...
Including your own name in your business name
can under the right circumstances create a feeling of trust, which brings credibility
...
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OTHER FACTORS
Is the business name you want actually available?
There is no absolute right to a business name unless of course that name is the name
of a company or another business trading in the same area as you’re intending to
...
Of course it would also be silly to knowingly use another business name as not only
are you bound for legal conflict, you are also denying your business any opportunity
of being unique
...
Search through as many search engines as you can, including, Yahoo!, Google, Ask
Jeeves and any web directories relating to your chosen field
...
Better to find this out now than when you’ve ordered all your stationery,
brochures and the like
...
For example if you’re planning to
have labels printed for your products, will the name fit on a small label?
o
Will it create the right image for your business?
o
Will it build trust and credibility?
o
Can you get a website domain name to fit in with your business name?
o
If your business expands, diversifies or changes completely, can you keep this
name or will another be needed?
o
If you abbreviate your name, what do you get
...
Can your
name be abbreviated, and if so are you comfortable with the abbreviation?
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Opening a business bank account
There is no legal requirement that I am aware of that says you must have a business
bank account
...
OPERATING WITHOUT A BUSINESS BANK ACCOUNT ^ CASH ONLY
If you’re planning to run a small hobby business where all of your customers can pay
you in cash then you don’t necessarily have to open a bank account
...
You keep a float in your till to pay your business bills etc,
and then finally you pay yourself using cash
...
Not business income!
Obviously there’ll only be a limited amount of businesses that will want to operate on
this sort of basis and with credit card usage becoming more and more popular it looks
like cash will become a thing of the past
...
Certainly their charges are similar and once you get
past any initial period of free banking, there’s not much difference
...
I’ve found the ‘limits’ to be more than generous and if you do exceed your
limit you then only pay to lodge those items over the pre-agreed quota
...
Our free banking account is basically a postal
bank where the only way to lodge monies is either via the post using their
prepaid envelopes or in an envelope using one of their branch’s cash
dispensers, which means lodging cash is pretty impossible
...
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These arrangements suit us but might not suit your business
...
Ask yourself:
1
...
Are you planning to take credit cards?
3
...
Will you buying your products from abroad?
5
...
Anyone who is considering future borrowings for their business, employing staff and
taking large amounts of cash will need a bank where they can actually speak to a
business bank advisor who will be sympathetic to the sort of problems you face
...
Unfortunately she failed to make sure the cheques
had actually cleared before writing cheques for her employees’ wages
...
The results were disastrous
...
This started a panic with staff telling her
customers that they thought her business had gone bankrupt
...
It was difficult for her to rebuild her business but she did
...
Her argument was that her cheques had taken an
extraordinarily long time to clear
...
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Ask your bank manager some questions
Someone once described a bank manager as being: ‘someone who loans you an
umbrella when it’s sunny, then asks for it back when it rains
...
The list below is by no means
exhaustive:
1
...
What is their criteria for granting business overdrafts? Some banks will insist you
have an established track record with them for a period before they will consider
your application
...
Ask them to explain their bank charges, particularly in relation to free banking
offers
...
If you exceed those limits will you have to pay
charges on all your transactions or just those that exceed their limits?
4
...
This is where you’ll find out if you’re
talking to a member of staff in a call centre reading from a crib sheet or someone
who is actually interested in working with your business
...
When it comes to bank accounts ^ keep your personal and business
accounts at separate banks
...
The reason I recommend you keep your accounts at separate banks or building
societies is that in the event that you have a problem with one account, the bank may,
at its discretion, enforce its power and put a freeze on your other accounts thus
rendering you completely impotent
...
Were you to find yourself in this
unfortunate situation it’s quite probable that the bank would freeze your personal
account as well as your business bank account, which as you can imagine would even
be more disastrous
...
Before you know it everything is frozen
...
Creating a business identity
TELEPHONE LINES
Do you need another line? Yes, I believe you do
...
In the past I’ve phoned
businesses where children have answered the phone and I’ve given up trying to get
them to put mum or dad on so I can order something
...
A separate business line will not only give your business credibility, but also make life
easier for you
...
The disadvantage to having a separate business line is, of course, cost
...
By using a domestic line as opposed to a business line you miss
out on free listings in the business section of the phone book and of course when
anyone searches directory enquiries you will only be listed if you have a business line
...
Freephone numbers
When deciding on a business number you could also consider introducing a
freephone number or a number where your customers only pay the cost of local call
to contact you
...
The fact that your number will cost either nothing to call or the cost of a local call will
give them an added incentive to call your business first
...
When it comes to publishing stationery you have a number of choices:
o
Put together your own simple letterhead without a logo and print your own
stationery using your PC
...
o
Employ a graphic designer to create your logos and letterhead and then either
print it yourself or have a printer do it for you
...
By far the simplest and cheapest way is to do everything
yourself
...
Creative Holidays Cornwall
Primrose Cottage
Seafront
Cornwall
Tel:12345678
www
...
co
...
co
...
Should you have any questions, or to book your holiday, please call us on the above
numberor book online using our website
...
Kind regards
Bill Holiday
Proprietor
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Nothing fancy is needed
The important thing when deciding on how to approach your stationery is to
remember that nothing fancy is needed
...
Clip art is the image/cartoon graphics you receive free with most software publishing
programmes
...
If you use it when creating your identity, the
chances are that other similar businesses will too
...
While clip art is
fine for party invitations and birthday announcements, the image of your business
will undoubtedly suffer if you use it
...
Although it’s
relatively expensive to employ a specialist company to design your brochure,
letterhead and so on, it can pay enormous dividends especially if what you’re going to
be selling is high value and the buyer needs to be assured of your credability
...
Before employing a designer to work on your behalf make sure you:
o
See examples of their work
...
o
Ask for a written quotation
...
Before you enter into
any commitment make sure you know exactly what you are getting for your
money
...
Hopefully this won’t be necessary as professional
design companies will always send what is known as ‘copy-ready proofs’ to you
for approval
...
It’s vital you check these thoroughly for
mistakes as once you have given your approval the proofs will be printed and
you will have to pay for any amendments or alterations
...
Some businesses will insist you pay upfront
...
In the event
that you’re not happy with the quality or you don’t get what was originally
agreed you will have far more influence if you haven’t already settled the bill
...
If this is the case, offer to pay a deposit on order
with the balance falling due when you collect your work
...
Before printing anything make sure you check the proofs for errors and
omissions
...
Remember, if you are operating as a sole trader and trading under a different name
then by law you must include something like ‘Paul Power trading as Walking
Holidays Cornwall’ on your letterhead
...
(See Chapter 10 for more
information
...
Provided the quality of print and paper is of an acceptable standard these packages
can offer great value for money and in my experience printers are generally happy to
include some free artwork and layout
...
Envelopes
When it comes to posting out your letters, brochures, direct sales materials etc, you’re
going to need to think about envelopes
...
These are the ones where all you have to do is fold your letter in the correct
place and the address is automatically displayed through the window
...
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Ask your printer to give you a quote to have your business name printed
on your envelopes
...
Otherwise it might get
mistaken for junk mail and binned without being opened
...
Whatever you decide on make sure everything is consistent
...
If you’re unsure don’t commit yourself
...
I’ve known of small businesses who’ve rushed
their stationery order through only to find something as simple as the telephone
number was incorrect
...
The fact that you haven’t checked your telephone
number, business name or postcode is not the fault of the printers and therefore not
only will you end up with the most expensive scrap paper money can buy, but also
have to have everything redone
...
Starting a business is a bit like organising a wedding
...
An extra colour here and little embellishment there, and let’s just go for
that satin finished paper and suddenly your costs have quadrupled
...
During your first meeting with your printer let him know what your budget is and make
it clear that you will not be spending more than this figure
...
Our printer has been extremely helpful in
coming up with novel ways of getting the printing we want done to our budget
...
Because I run a number of small businesses, my
natural instinct is to choose a similar business to mine to undertake our printing
requirements
...
Personally I prefer the smaller independent who understands and appreciate the
problems that come with running a small business
...
It’s important therefore to check with
your insurance company that you are covered in the event that someone burgles your
home office and steals your computer, printer etc that your cover includes you
running your business from home
...
Unfortunately the relatively high cost of insurance cover means it’s usually one of
those things to ignore when starting your own business from home, but you do need
to ensure that by running your business from home you don’t invalidate your
ordinary home contents and buildings insurances
...
So if you’re planning to turn your garage into a workshop, you should check with
your local planning office to see whether or not you will need planning permission
...
But be
aware that if you are running a limited company from home the law requires you to
display somewhere outside your office the name of your business
...
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Where to base your business
It may seem odd that a book promoting the home based entrepreneur advises you to
consider working from somewhere other than your home, but there will be times
when this will make sense
...
Our gardening business includes trailers, machinery, vans and all that goes with
that
...
The other problem we’d face is that there is
now so much of it we wouldn’t be able to fit it all in
...
We then have a large
showroom area where customers can browse a large selection of Dutch bikes, we offer free
parking and customer toilets
...
The reason for this is that I prefer working from home, and the additional cost of
hiring an office on top of workshop/storage space was astronomical
...
Of course this arrangement may not suit every business, particularly those employing
office-based staff
...
Although you may
find you get a better rent figure if you agree to a longer let, you might find that after a
year the property is no longer suitable for your business and the costs terminating the
lease may be so great as to make it impossible
...
Just like I’ve done with my businesses you may find that you’re better off sourcing
some form of cheap storage/workshop area where you can keep stock, machinery etc,
and then base your office at home
...
Estate agents are paid commission on rent
and in my experience will always be pushing towards that ‘ideal property’, which
costs just little bit more than the one you’re looking at
...
SHARING A UNIT
It’s also worth considering sharing a unit with another business
...
If you are going to do this make sure you:
o
get the permission of your landlord
...
Although useful for reducing the costs of renting somewhere, you really do need to be
sure about whoever you share with
...
There are now companies who specialise in renting a variety
of sizes and who offer easy in-and-out terms, which usually mean that you can rent
these units on a weekly or monthly basis
...
The golden rule when it comes to renting anything is not to be tempted to
rush into it
...
The best place to read lease agreements is
away from wherever it is you’re planning to rent;
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get a solicitor to read the lease for you if the property is anything other than a
self-storage type unit
...
Not every business will be subject to the same laws
...
It’s up to you to check what legislation your business will have to adhere
to
...
Important legislation you should be aware of if you’re planning to open business
involving food:
o
o
o
The Food Safety Act 1990
Food Safety (General Food Hygiene) Regulations 1995
Food Safety (Temperature Control) Regulations 1995
You can find full details of the requirements of these acts at The Foods Standards
Agency Website: http://cleanup
...
gov
...
You should also be aware of the legislation covering the following areas:
o
o
o
employing staff
health and safety legislation
Data Protection Act
...
You are also required to undertake a number of checks on anyone you intend
employing
...
Their age will affect the types of work they
are allowed to do; the hours they are allowed to work; rates you must pay them
...
You must be sure that
their status in the UK allows them to work
...
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Their skills and aptitude for the job
...
Visit the government’s Business Link website http://www
...
gov
...
You can use their free software tool to create a Written Statement of Employment for
all your employees and use their interactive tool to check your legal responsibilities
when taking on staff
...
Health and safety
As a business owner you have a legal responsibility for the health and safety of your
employees and anyone that may be affected by your business and its activities
...
It’s essential you have in place a properly written health and safety policy for your
business
...
hse
...
uk
...
It
works in two ways:
1
...
Personal
information would include your customer’s addresses, dates of births, telephone
numbers etc
...
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These rights, which are known as ‘right of subject access’, give everyone the right
to see the information that is being held about them on a computer, and some
paper records
...
Make sure that, whatever it is you’re recording about your customers,
you’d be happy for them to see it
...
For example if you run a
walking holidays business where you regularly send information to customers on
your mailing list, periodically you would have to make sure that the details you
have are correct and up to date
...
(There are some exceptions to this, for example when the information stored is
being used in the detection and prevention of crime
...
Notification is the
way in which a data controller’s processing details are added to this register
...
Unless you are exempt from Notification, you must notify the commissioner and pay
a fee, currently £35, to be added to the register
...
Failure to notify
when you are not exempt is a criminal offence
...
dpr
...
uk
...
If you receive a request you must:
o
send them the information you hold on them;
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o
tell them why this information is processed and anyone it may be passed to or
seen by;
o
explain the logic in any automated decisions;
o
deal with their request within 40 days from the date you receive it
...
COMPENSATION
Be aware that individuals may seek compensation through the courts if they have
suffered damage, or damage and distress, because of any contravention of the Act
...
I really recommend a visit to the Business Link site,
which is an invaluable tool for small business owners and entrepreneurs
...
Give plenty of thought to the name you’re going to give your business
...
2
...
There’s nothing wrong with the kitchen table
...
A successful business is impossible without creating credibility
...
4
...
5
...
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RESEARCH: THE DOORWAY TO SUCCESS
The two huge mistakes you can make when starting your business are to:
1
...
2
...
Deciding on a product first and then looking for customers to buy your goods is a
common problem, and the reason many businesses fail
...
The
novice entrepreneur comes up with a great idea for a business, stocks up his shelves,
opens his doors and then nothing happens
...
Why haven’t we got one of these shops? Is it maybe that no one either wants or needs
whatever it is you’re trying to sell them? Or if they do, perhaps there aren’t enough
potential customers to make the business viable
...
To succeed you must first identify your target market and understand their needs
before you get your products and services together
...
Not having a winning business plan is the other most common mistake made by
would-be entrepreneurs
...
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But the point is you reach your destination faster and far less stressed if you invest a
small amount of time preparing and familiarising yourself with the best route
...
o
o
o
o
o
o
Overestimating how much the business will sell or underestimating how long it
will take to achieve initial essential sales targets
...
Failing to identify your market correctly because of inadequate market research,
or no research
...
Carrying too much stock
...
Or in other words failing to have a winning business plan
...
In fact, I had thought about renting it
myself and turning it into a cycle shop
...
Personally I thought the rent was too high for our town
...
Not only had they already had one offer, but were now turning down others
...
I was shocked
...
Needless to say the new Internet cafe´ proprietor didn’t appear to have any
trade at all
...
Again surprising as there was already a large secondhand bookshop in what is a very small town
...
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I don’t take any pleasure telling you this story, but the reason it’s important is that
any one of us could end up in the same unfortunate position as that entrepreneur if
all we do is follow our heart and go with the business idea that suits us most
...
Before you can even think about
success, you need to be able to survive
...
They are:
o
o
overestimating
underestimating
...
I believe it can take at least three years to establish any worthwhile business
...
Researching your idea
There are various areas of your idea that will have to be researched and looked at
...
Look at these from every possible angle
...
Here’s something to think about –
why was the teabag a roaring success and the coffee bag a huge flop? I don’t think
anyone has actually managed to answer this one, but it does go to show that
sometimes even though something similar has been an enormous success it doesn’t
mean that your new idea will work too
...
Question everything about your product or service and ask yourself:
o
o
o
What makes your product/service unique?
Why would customers choose you in favour of anyone else?
How easily can you source your products?
In the initial burst of enthusiasm for your new business venture it’s easy to overlook
the question of sourcing
...
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Experience
Our local fishmonger relied entirely on supplying his business from local
fishing boats until recently
...
To overcome this he now buys a percentage of his stock from fish
wholesalers where he still manages to get fresh supplies for his business as well
as offering locally caught fish when it’s available
...
CURRENCY FLUCTUATIONS AND TRANSPORTATION COSTS
If you’re sourcing either products or raw materials from abroad you’ll need to make
sure that you allow provision somewhere in your costings for those inevitable currency
fluctuations and other costs that can adversely affect the price you pay for your goods
...
Another factor you’ll need to consider is transportation costs, which can rise
significantly in the event of an oil price increase, civil unrest or natural disaster
...
He goes there himself and transports them back to the UK on a road trailer
towed by his four-wheel drive
...
MINIMUM QUANTITY ORDERS
Beware of the effect that having to order minimum quantities can have on your
business
...
To keep costs to an absolute minimum our suppliers send our bike deliveries as
fillers for other business trailers, so our bikes travel with all sorts of other goods such
as fruit, flowers, vegetables and even cakes
...
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Another often unseen problem with minimum orders is you may not be able to order
further stock as you haven’t got the cash as all your money is already tied up in your
stock
...
MAKING YOUR OWN PRODUCTS
You’re intending to start a business where your unique selling point is that you make
all your own products
...
Whatever it is you’re selling, make sure you can produce it as quickly as will be
needed to make your business profitable
...
Offer anything else, and you
may well destroy your uniqueness
...
Her attention to detail has gained her an enviable reputation both in the
UK and abroad, with many of her products being purchased for the lucrative
American market
...
However, soon after opening her
shop she had to close it
...
Whereas before she spent her days working at her kitchen table crafting her
products, she now had a shop to run, which meant she had little or no time
left to make her products
...
She’s now back at her kitchen table doing what she loves most and her
business is booming
...
A product that is
imaginatively and attractively packaged will obviously have greater a chance of being
sold over one that is not
...
Mail order
If you’re intending to offer your products by mail order, you’ll need to be sure:
o
that your products are suitable for dispatch by either postage or by courier;
o
they don’t get damaged while in transit
...
Selling at craft fairs and exhibitions
o Try to make all your customers walking advertisements by giving them
something eye-catching to put their purchases in
...
o
Consider encouraging your clients to return their packaging to you for use
again
...
Wholesaling your products
If you are selling your products wholesale you need to be sure that whatever you’re
selling remains in the same pristine condition once it reaches your customers’ shelves
as it did when it left you
...
PRICE
Unless you are proposing to sell a truly unique, sought-after product to a small niche
market, consider very carefully the price at which you sell your goods and services
before you throw open your doors
...
The ethos that runs through all of the businesses that I am involved in is that we offer
a value-for-money service where customer service is our number one priority
...
We offer a quality products at prices
customers find attractive and leave enough profit to make it all worthwhile
...
I recently came across an Internet business offering what appeared to be bicycles
similar to the ones we sell
...
However when I compared their cycles to ours it
was apparent that they were not the same product in terms of specification and build
quality
...
To be successful, research needs to be carried out over a period of time as opposed to
on one occasion, as every business has seasonal peaks and troughs
...
For example, most retailers suffer in the
early part of the year when business is slow after Christmas
...
So make sure your research gives an accurate picture of the market in general and not
one that is either enjoying a seasonal boom or a temporary famine!
HOW TO FIND POTENTIAL COMPETITORS
Obviously before you can start researching your competitors you must first identify
who they are
...
Remember the poor guy who opened up an Internet cafe´ in my local town only to
find that the local library were offering Internet access? These sorts of events aren’t as
uncommon as they might sound
...
The location of this restaurant is superb in that it gets the best
views of the harbour
...
If nothing
else you may well spot a business opportunity – a worthwhile concession up for
tender
...
CHECKING OUT THE COMPETITION
When checking out the competition make sure you find out:
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o
Exactly what it is they are offering
...
For example
is VAT included or added on at the point of sale?
o
The sort of guarantees your competitors are offering
...
How does this compare to what you
are offering?
o
Customer testimonials
...
If they haven’t, why not?
o
How close they are to where you will be based
...
If they have a retail business you should camp yourself
discreetly outside at various different times to see how many people not just go
into their shop, but also come out having made a purchase
...
Also send
them some query emails to see how quickly they reply
...
CUSTOMER SURVEYS
Sometimes the only reliable way to be sure that whatever it is you’re about to sell is
going to appeal to your potential market is to carry out customer surveys
...
Make sure you include
your email address
...
Again, invite comments and
suggestions regarding your proposal
...
o
Send out questionnaires to clubs, groups and organisations relating to your
hobby
...
For example, everyone who returns their questionnaire before
such and such date will automatically be entered in our free prize draw to win a
whatever it is you’re offering
...
Wherever your hobby enthusiasts gather, get out there
and network with them
...
For example, if
you’re introducing a new product or service you could go along and offer free
test runs/trials for whatever it is you’re offering
...
Not only have I
found this a brilliant way of getting new ideas, but also for finding new
customers
...
It may be that businesses like the one
you are proposing have come and gone
...
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Investigate as much as you can about your potential market
...
o
o
o
o
o
o
o
Internet search engines
...
Council records
...
Newspaper archives
...
Speaking to potential customers
...
Without exception everyone we spoke to was extremely helpful and offered
us the benefit of their experience and came up with some useful suggestions
...
That way you’ve got a good chance of
finding out what’s gone on in your area, and whether or not a business similar to
what you’re proposing has come and gone
...
HOW MUCH CAN I CHARGE?
There’s no easy answer to this one, and how much you sell will depend on a
combination of factors including:
o
o
o
o
how big your market is
how well you promote your products and services
your unique selling points
your competitiveness
...
Once you’ve established this you then need to be sure
that there will be sufficient demand to make it profitable
...
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A common mistake is to decide on the type of business you want to start and work
backwards finding out, often too late, that you can’t afford to keep going what you’ve
already started
...
When calculating your initial costs, you should consider:
o
o
o
o
o
o
o
o
o
How much you will have to pay for your initial stock
...
Vehicle costs
...
Insurance costs
...
Website costs
...
Working capital
...
This is as opposed to fixed capital, which is the capital you use to buy your fixed
assets, for example what you spend on items such as buildings, vehicles, machinery
etc
...
For example, if your business involves selling a range of
products you will always have money tied up in unsold stock
...
Thus even though your business will be receiving sales revenue (income from
sales), you will have to reinvest some, or even all, of this revenue in purchasing
replacement stock
...
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You need either to have money available in the form of working capital, or access to a
bank overdraft to cover your regular business expenses until such time as your
business is fully able to support itself
...
Initially you might find that although you’re busy, you are not earning very much, if
indeed anything, because you’re having to reinvest your revenue in your business
...
Who is going to finance your new venture?
There are a number of options available to you:
o
o
o
o
use your own funds;
bank loans;
business angels;
small firms loan guarantee
...
That way you won’t be burdening
your new business with loan repayments
...
BANK LOANS
My experience of banks and their lending policies has been dismal to say the least – so
much so that I don’t think I will approach them again
...
BUSINESS ANGELS
This is my favourite funding option
...
Obviously, you’ll need to be satisfied that you can get
on with your business angel and that you’re happy to have someone else have a role in
your business
...
You can find business angels by using the Internet and searching under key words:
‘business angels’, ‘funding for business’, ‘venture capital’ etc
...
You can apply for a loan for sums of between £5,000 and £100,000, or if your
business has been trading for more than two years you can apply for up to £250,000
...
The SFLG guarantees 75 per cent of the loan
...
You can get a loan for most business activities although there are some restrictions
...
dti
...
uk
...
When this happens you have a number of options, culminating in taking them to
court
...
So it’s important when dealing with an
overdue account not to rush in wielding a sledge hammer when one isn’t needed
...
By doing this you reduce
the likelihood of having a payment dispute at some later date
...
We include in all our written estimates that
our terms of business are that payment is made immediately upon completion
of the job
...
We adopt the following procedures for dealing with late payers:
o
Where a customer does not settle their bill immediately, we allow a period of no
more than seven days for their cheque to arrive, after which time we send a
polite reminder letter
...
It’s vital to keep dialogue friendly and non-threatening
...
o
If after a further seven days we still haven’t been paid, and there isn’t a genuine
reason why the bill hasn’t been settled, we then write a final letter, sent by
recorded delivery
...
We also include in our letter that if we don’t receive payment within seven days,
we will reluctantly have to take out County Court Summons
...
Although the
system is easy to use, it is far better to have your debt settled without the costs and
time involved in preparing your case for court
...
If your application is
successful in the courts you can reclaim your fees from the other side
...
Then you have to make a
further application to the court to allow you recover the debt from them
...
You can get the all the information, forms etc you need to make a County Court
Claim by visiting your County Court or their website at http://www
...
gov
...
Or you can phone the Business Debtline on 08001 976 026
...
And their angle on this? To write one for us, for which of course we will have to pay
them a fee
...
I don’t care if they’ve been Richard Branson’s personal
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business planner for the past 20 years, the only person that can really write a truly
winning business plan for your business is you
...
An expert’s expertise is in writing business plans
...
But you do because
it has something to do with your hobby
...
THE TEN ELEMENTS OF A WINNING BUSINESS PLAN
1
...
2
...
3
...
4
...
5
...
6
...
7
...
8
...
Essential for every business because you work out how
quickly and often you will receive cash into your business versus how much you
will have to spend to continue trading
...
Operational details for your business, which will include:
– details of where your business will be based, including any additional business
premises that you may need to rent (for example additional storage space for
stock etc);
– information on how many staff (if any) you will need to hire, where you
intend to get these staff from and how much you’re intending to pay them
...
This is wholly unrealistic and if your business relies
on others supplying their labour free of charge then you should be asking
yourself if your business is really viable
...
SWOT analysis – what are the strengths, weaknesses, opportunities and threats
facing your business?
BUSINESS PLAN FORMAT
If you’re considering approaching a bank to help finance your business, your business
plan will need to be presented in a certain format
...
If you are in partnership with
someone, or you are hiring specialist help, they’ll want to know more about these key
people before they are willing to lend you any money
...
The business plan is laid out in template form and all you have to do
is fill in the blanks
...
Having a system where you can change one item and then
immediately see the effect on profit and loss figures saves enormous time working
things out
...
Your presentation should be:
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o
Clear and to the point: free of superfluous and distracting things such as jokes,
anecdotes and over-familiarity
...
o
Convincing
...
They need to be convinced
you know what you’re doing and that above all else you are confident that you
can achieve what you are saying
...
Nothing is more soul-destroying than making a
presentation to someone when you feel at a disadvantage because of the way you are
dressed
...
Summary
1
...
2
...
3
...
Even though two businesses may on the
surface appear to be servicing the same market, they can be world’s apart
...
Try to get an accurate picture of your set-up costs before you start your business
...
Don’t forget working capital
...
Remember that in the
early stages you will need to reinvest much of your initial earnings to build and
develop your business
...
The only way to truly beat the
competition isn’t to undercut them or outdo them, it’s to outsell them
...
Nowhere is this truer when it comes to the perceived mystery and magic surrounding
successful salespeople
...
The next time you have nightmares about having to do your own selling I want you
to know that often selling is nothing more than you being able to ask potential
customers one simple question
...
Selling isn’t about:
o
o
o
talking your customers into buying something they don’t want;
selling them something at a grossly over-inflated price;
developing a ‘killer instinct’, whatever that might be
...
That’s what selling isn’t
...
Imagine you’ve just decided that you want to take up canoeing as a hobby
...
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You visit your local outdoor shop and once inside you’re approached by a friendly
and obviously knowledgeable salesperson who encourages you to have a good look
around the shop without feeling under any obligation
...
You also like the range of canoes in the shop
but are a bit unsure about which ones might be suitable for you
...
Now put yourself in the salesperson’s shoes
...
You stock everything from books, videos and clothing to a wide range of
canoes to suit a range of uses and budgets
...
You’ve just finished serving a regular customer when this person you have never seen
in your shop before nervously approaches you asking for advice, which you freely
give
...
Now if I was that salesperson, I’d want to sell them a canoe and all the bits and pieces
they need
...
Makes sense, doesn’t it?
So why do so many otherwise competent salespeople allow their customers to walk
out of the door of their shop without asking them one simple question?
WHAT IS THE MOST POWERFUL SALES TECHNIQUE IN THE WORLD?
Some salespeople will never grasp this, because it’s so simple
...
That’s it
...
The most successful and simplest
sales strategy that you can employ in your business is to say to someone, ‘Would you
like to buy it?’
Of course there are lots of different ways you can ask potential customers to buy
whatever it is you’re selling, but the question remains the same
...
We all know
that these so called sales techniques are used by all sorts of individuals and
corporations on a daily basis
...
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You won’t have to employ any of these unscrupulous tactics because as a home
business you’re going to be offering quality, value-for-money goods or services to
people who really need them
...
The only thing that is worse than a morose,
unhelpful salesperson is one that leaves you to ‘think’ about things
...
Remember that people buy benefits not features
...
You must give your customers a reason for buying from you – otherwise they’ll
buy from someone else
...
If you’re doubtful about selling whatever it is you’re selling, people will be afraid
to buy it
...
PEOPLE BUY BENEFITS NOT FEATURES
Believed to be the first rule in marketing, the ‘people buy benefits not features’
mantra is at the heart of every advertisement you’re ever likely to come across
...
Why is this concept so important? To answer this we need to look at the reasons we
buy anything
...
Marketing companies are aware of this, and many competing products highlight
price as being a benefit
...
What’s in it for you? What will you
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get if you buy a certain product? Will you feel better? Slimmer? Fitter? Wealthier?
Sexier? Younger?
Selling is all about benefits
The reality is that we don’t buy things because of features, we buy because of the
benefits that come with owning a certain product or service
...
Many of my
clients lead busy professional lives, which means that they are ‘time poor’
...
So the features of the service my business offers are that we undertake all aspects of
garden maintenance, including lawn cutting, hedge cutting, pruning etc
...
When we market our service we list our features (what we offer), but we sell our
benefits
...
Tired of spending all your free time mowing the lawn, cutting hedges and
travelling to and from your local dump?
Here at Paul Power Landscapes we’re experts at doing the thingsyou hate
...
The benefits are:
o
o
enjoyment
free time
...
Start looking at as many advertisements as you can
...
We can learn lots from looking at how other businesses market their products
...
Then when
the time comes to write your own ads you can browse through your file for
inspiration
...
Next
time you’re out shopping listen to what salespeople are telling potential customers
...
You will hear the same
message: ‘But the great thing about this is that it
...
The more skilled the salesperson the more suited the benefit will be
...
Take, for example, someone
buying a flight ticket
...
Some will be travelling on business, others holidaying and others wanting to travel as
cheaply as possibly
...
Comfort and getting you there on time will be key
benefits for business travellers, while value for money might be the message for
holidaymakers
...
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If you’re face-to-face selling then all you have to do is to correctly identify
the buyer’s needs and sell them a benefit that they want
...
Wait and think about it and it may be
gone
...
LOOK AT WHAT YOU’RE PROPOSING TO SELL
Whatever it is you’re planning to sell, start by listing all its features and then work on
the benefits
...
Many of the benefits may not be immediately apparent to you
even though it’s your product or service
...
Once you’ve come up with your list of benefits you’re almost ready to sell anything to
anyone, but you must learn and follow the remaining two golden rules of selling
...
But the bottom line still remains
– if you don’t give a good enough reason, people will buy elsewhere
...
This could be anything – an
essential item, luxury treat or something you buy everyday like a newspaper or carton
of milk
...
Immediately underneath your circled item write down where you intend to buy this
item and draw a circle around it
...
Done?
Now draw a line from the item and then draw another big circle
...
Write down as many places as
you can think of, stopping only when there is no more space left in your circle
...
)
Finally, draw a line and another big circle from the circle where you’ve written where
you’re planning to buy this item
...
Your findings
This exercise is to show you that although you made an initial choice where to buy
your item, there are other places you could buy it
...
Why did you make that initial choice? Cost? Location? Or something else? Marketers
often refer to these reasons as a business’s Unique Selling Points (USPs)
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Price
Unless you intend building an out-of-town pile-’em-high sell-’em-cheap style
warehouse, it’s unlikely that you will want to sell on price alone
...
For example if you’re planning on
running your business as a mail order shop, your goods will need to be keenly priced
to get customers buying from you
...
On the other hand, if your business will involve lots of personal attention and fussing
over your clients’ every wish, your prices will be higher than your competitor offering
a bargain basement, no-frills service
...
Quality
What makes your goods and services better than anyone else’s?
It’s not enough to simply say the word ‘quality’
...
Bed manufacturers are a good example of this
...
Buyers will therefore spend more on a bed that
promises restful sleep
...
The unique selling point will often be to
highlight how many springs or layers this bed has over its competitors
...
We’re living in a world where the words ‘next week’ often lose a sale
...
For example I’ve now given up furniture shopping in chain stores for the simple
reason that no matter how small the item, even a chair, it has to be ordered by the
sales staff
...
Finally, after what seems like an extraordinarily long wait you get a phone
call to say the furniture will arrive ‘sometime on Friday’
...
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I’m not alone in switching my allegiance back to the small independent retailer who
either has the item already in stock or will personally get it in for you and deliver it to
you at a mutually convenient time
...
Uniqueness
Many businesses based around a hobby are successful because what they are offering
is unique
...
The last thing they want is a large amount of their store shelf space
clogged up by products that relatively few customers will be interested in
...
Highlight whatever makes your business unique as a selling point
...
Experience
A few years ago the rudder on my sailing boat broke in half while we were in
heavy seas
...
I
searched everywhere to find a replacement rudder with no avail
...
Finally, on the advice of a friend, I spent a morning walking around what
I’d previously thought were disused warehouses
...
As soon as I met him I knew he
was skilled and competent
...
It was
everything about him
...
He had the entrepreneur passion
...
He told me he was sorry
that he was going to have to charge me so much, but he’d put a lot of work
into it and it was made from mahogany
...
He handed it to me lovingly wiping it down
with a cloth to remove his hand prints from it
...
He apologised again
...
I was shocked
...
Unfortunately he
took it to mean I was shocked at the price and began to justify his costs again
...
‘Everyone wants fibreglass now,’ he said, ‘wood
is just too high maintenance
...
Clearly John’s USP was that he was a skilled craftsman and experienced boat builder
...
While the new boat market is dominated by nomaintenance fibreglass crafts, there are still a large number of sailors who prefer
wooden boats, and some would say there has been a high revival in wooden boats in
recent years
...
Certainly if his prices were anything to go by he was
seriously undercharging, and these super-low prices could only be sustained for so
long
...
Having something unique to offer is a great selling point
...
We’d give almost anything to be able to get our
hands on something different
...
The enthusiasm and passion you bring
to your products and services is what makes your business as unique and special as
you are
...
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RULE 3
...
It is often the problem
when you work for someone else where the sales department has little control over
the quality of the products or service they’re selling
...
My
experiences have been that you walk in and are pounced on by an over-zealous
salesperson who follows you around the store like a puppy saying how wonderful and
nice everything that you look at is
...
And all throughout you’re subjected to the information
that there’s 50 per cent off this weekend, and that the now mandatory interest-free
credit is available on that particular item
...
The salesperson sells you the benefits (as they see them) –
interest free credit, etc
...
’
However, where it all falls apart is when you test the confidence they have in their
product
...
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However if they don’t have such good customer service, the cracks will soon start to
appear
...
The problem is that they’re not confident in their product
...
Unless you’re a seasoned conman, you won’t be able to sell unless you
believe in what you’re selling
...
There’s often a temptation to cut corners and decide that whatever
you’re selling will be ‘all right on the night’ sort of thing
...
Home businesses succeed because their owners believe
completely in what they’re offering
...
Special offers, interest-free credit and free delivery are the domain of the stack-themhigh sell-them-cheap brigade
...
You are different
...
Overcoming objections
The most notable difference between giving something away and selling it, is
objections
...
Unfortunately many sellers misinterpret an objection as being a reason someone
doesn’t want to buy, when in fact it is a clear buying signal
...
Consequently the seller’s shutters go down, the wrong message is given out to the
would-be buyer, and in an instant any chance of a sale is lost
...
If you’re to successfully overcome customer objections you must understand that
they’re actually not objections at all
...
Imagine for a moment someone is planning a holiday to some far-flung exotic
destination
...
They know roughly the area
where they want to go to because friends went there some time ago and said they
really enjoyed it
...
They could search the Internet, but
they really want to talk to someone about this holiday because although their friends
told them it was lovely, and they saw the breath-taking holiday pictures, others have
since said that the area is dangerous and holidaymakers can be at risk from local
criminal gangs
...
You are very helpful and pull out all the brochures on the
areas
...
So they tell you that it sounds a bit expensive, and
isn’t really what they were hoping to pay
...
Now you have two options:
1
...
2
...
If you are a more inexperienced salesperson you are more likely to opt for number
one
...
Why?
Well let’s look at the obvious first
...
In anyone’s mind that should
be seen as a fairly strong buying signal
...
Again this is a positive
buying signal
...
So what you need to do now is to overcome their objection
...
Well let’s not give up yet and see what we
can do for you
...
First that you’re sorry it sounds
expensive, and second that you are going to help them get the holiday they want
...
So you ask them: ‘When you say it’s more than you expected to
pay is that because you’re seen a cheaper deal elsewhere?’
Notice I used the word ‘cheaper’
...
Always use‘cheaper’and not ‘better’ when dealing with a price
comparison
...
Your customer now tells you the full story
...
’
Because you know your business you will know why there is a price difference
...
Now you’re ready to overcome the objection
...
But before you
do that you need to know whether or not the holiday is within your customer’s
budget
...
However, in all the years I’ve been running my own
businesses no one has been insulted by this question
...
Provided the holiday is within your customer’s budget then there is no reason why
they shouldn’t want to book their holiday with you
...
But of course in your position as salesperson you don’t know this and just as you
thought you’d got the order, your efforts are under attack again when you’re told, ‘I
don’t know how true it is but I’ve heard that a number of tourists have been robbed
when they go to this area
...
Provided the area isn’t marred by frequent robberies you’ll be able to allay your
customer’s fears
...
HOW TO TURN OBJECTIONS INTO IMMEDIATE SALES
As we’ve seen, objections are really buying signals because the buyer is really asking
questions that, if answered favourably, will mean they can buy whatever is being sold
...
In a few moments we’ll look at different ways of closing a sale
...
Awin-win situation is where the buyer gets what he wants at a price the
seller is happy to sell at
...
Often buyers use this objection hoping to get a better
deal
...
I say ‘degree’ as the last thing you want to do is get a reputation for having prices that
are always negotiable
...
This is how it works
...
No more buts, ifs, I’ll think about its
...
However if he does agree to buy now he gets the item at a reduced
price
...
Too often salespeople rush in
and spoil a sale because they just can’t stay silent for long enough
...
Think of the last time that you either made a significant purchase or bought
something you wouldn’t usually buy
...
Like most of
us you’ll have needed some time, even if only a few seconds, to think it through
...
Your mind is on what you’re about to do
and any sort of conversation can at best be an extremely annoying interruption and at
worst make up your mind that you don’t want whatever it is after all
...
It’s also something that takes a bit of getting used to because most of us find silences
uncomfortable
...
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A good way to do this is to start using the silent technique next time you’re buying
something
...
The most effective places to try this technique are at large retail chain stores where the
salesperson’s income rely heavily on them closing sales
...
The technique works as follows:
1
...
2
...
3
...
4
...
Instead keep
staring at the item
...
Wait
...
Do not say anything
...
If they’re working on a commission the chances are the first thing
they tell you is that the price could be reduced
...
Although silences can last an agonising amount of time, it will actually only be a
matter of seconds
...
Being mentally prepared is important
...
Say nothing until your buyer speaks
...
Closing techniques
The technique of turning a buyer’s interest into a sale is known as closing a sale
...
However, I believe you only need to concentrate on three
...
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ASK FOR THE ORDER
In my experience this is often the most appropriate and easiest method of getting the
sale
...
Instead they talk on and on and round
and round, desperate to do anything but actually ask for the order
...
So always ask for the order
...
And if they say no, ask them why
...
THE ASSUMPTIVE CLOSE
My second favourite method is to simply assume your customer is going to buy from
you
...
When I meet a prospective client for my landscape gardening business, I always
include lines like this somewhere during the meeting:
‘When we come and do your garden would it be all right if we parked on your
driveway?’
‘Do you have an outside tap that we could use?’
‘Generally we like to get onsite everyday at about 8am
...
I always ask the last question as this shows my prospective client that I’m confident
enough to be able to show them examples of our company’s work
...
Questions like these help build up a rapport with your client and also establish you as
a professional
...
You can use the assumptive closing technique for any business
...
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Try and avoid using sentences like: ‘If we’re lucky enough to get your order,’ or, ‘If
we can agree a price,’ and so on
...
They are based on
‘if’s and also give the impression that your price is in some way negotiable
...
Generous use of the word when will pay dividends
...
Remember that very often people ‘buy’ people
...
For example, if someone is planning to go on a painting holiday they’re going to have
to be certain they like who’ll be teaching the course
...
They want to enjoy the
whole experience
...
One of the advantages is that there’s no big build up to a grand finale
where suddenly you must close the sale
...
THE ALTERNATIVE CLOSE
Another powerful closing technique is to use is what’s often referred to as the
‘alternative closing method’
...
So the decision is now what to buy, as
opposed to will I buy?
It’s an effective technique that’s easy to introduce
...
So if someone is browsing your hand-crafted, keep-out-all-draughts
knitted sweaters, then all you need to do is introduce a choice, which could be a
different colour or size
...
‘Would you like the black one or the grey one?’ ‘Small or large?’
You’re using two closing techniques here
...
So you’re
assuming your customer will buy one – but which one
...
After all how many of us have walked out of shops because they didn’t
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have the size or the colour we wanted and were either too shy, too busy or whatever to
bother asking
...
What then? Ask them what they’re looking for
...
Keep them interested and stop them from going elsewhere
...
They could be looking for gifts for someone else
...
So the alternative close can go on until they either buy something, or you run out of
alternatives
...
Price alternatives are good, too
...
Because your
product is unique and all of your scented, bubbly delights are lovingly created, they’re
considerably more expensive than traditional off-the-shelf soaps
...
The problem here is often that the prices are
just out of reach of the average impulse purchaser
...
One that appeals to those who
appreciate the quality and uniqueness of your soap and will buy it whatever the cost,
and one for those who would love to buy your soap if it was more affordable
...
Or have a special offer bucket where you include
all your soaps that haven’t come up to the same exacting standards as the others
...
If someone looks interested but then
disappointed when they see the price of your soap and makes for the door, get in
there
...
We all like choice
...
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Mastering the three Ps of selling
Undoubtedly, closing techniques are important
...
That said, there’s much more to selling than just closing techniques
...
If you
pay enough attention to the three Ps then many of your sales will close by themselves
...
Prospecting
2
...
Price
...
Few, if any, businesses have ever
succeeded, let alone survived, because they got lucky
...
Great sales figures don’t just happen
...
Experience
A few years ago I wandered around Brighton market hoping to find some old
vinyl records on behalf of a friend
...
You could say I got lucky
...
I must
confess I’m not a fan of boot fairs and the thoughts of having to spend a
Saturday or Sunday morning wandering round a wet field with the waft of
sausages and onions doesn’t do it for me
...
So
my success was really down to spending a little time preparing and planning
...
To my
amazement many were full of all sorts of interesting things and ideas and
these businesses were doing a brisk trade
...
It wasn’t difficult to see why
...
Therefore the businesses that were doing well had matched their products to
the people who visited the market, and the traders that weren’t doing well
clearly hadn’t thought about the type of market they were selling to
...
PRESENTATION
One of the most powerful selling techniques I know is simply to present both yourself
and your product with the utmost respect, which means dressing appropriately and
packaging your product correctly
...
Although
most people say they wouldn’t mind their landscape gardener turning up covered in
mud, sweat and cement, often they do
...
Dressing to impress is important
...
Similarly if you handle your product as
if it is a piece of rubbish you immediately devalue it
...
I do this because I know that our business delivers a quality, value-formoney service, something all too rare these days
...
Displaying your product
Next time you’re out for a Sunday afternoon stroll, take a closer look at why you want
to spend time looking in some windows and not in others
...
Most antique shops have retail display down to a fine art, as do
successful florists
...
Even the most mundane product can be made
to look appealing in the right window
...
Get that right and you will at least have
customers coming through your doors or stopping at your stand
...
Creating atmosphere
Often the difficulty with a small shop is creating the right atmosphere
...
Make it easier for
potential clients to browse your wares
...
Inviting people in
Display a notice on your door
...
’
And then once they are inside, make your visitors feel at home
...
Have some music playing in the background as this
helps take away that church-like silence you often get in smaller shops
...
‘Too big
...
’
‘Too expensive
...
’
‘Not really me
...
And at all times avoid that awful, insincere greeting: ‘How can I help you?’ To which
I’m always tempted to reply, ‘You could pay this month’s mortgage
...
So make it easy for them to buy
...
Too expensive and you won’t sell any, too cheap and you won’t earn enough profit to
stay in business long enough to repay your initial financial investment
...
Whenever you see products or services that
you’re thinking of offering in your business, stop and really look at what price they
are being sold at
...
You face an impossible task competing with
these businesses who can retail goods and earn a profit for far less than it would
probably cost you to buy these goods wholesale
...
Record your price findings in a notebook along with details of potential suppliers,
wholesalers, packaging companies etc
...
Five ways to turbo-boost your sales
My top five recommendations for turbo-boosting your sales:
1
...
3
...
5
...
Include a mail order facility
...
Publish your own newsletter
...
ACCEPT CREDIT AND DEBIT CARDS
Even if you don’t have a shop you should still consider taking credit and debit cards,
especially if you sell at craft fairs, exhibitions and so on, and what you sell is of
relatively high value
...
Not a huge amount by any means but how many of
us have £30 in our wallets?
People like buying things, especially something that they’ll be using for their
favourite hobby
...
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Experience
A local photographer did some brochure work for me recently and told me
that if it weren’t for him accepting cards his business would have closed years
ago
...
Even though expensive, it’s worth it
...
Just look at the restaurant business
...
Let’s go back to the homemade soap business example again
...
Chances are that many of these customers do not live in your
immediate area and probably won’t be able to return to buy some more
...
Yet an amazing number of businesses ignore the potential additional sales
that mail order can bring
...
You can also use this as an opportunity to promote all the other products you do that
your customer may not yet have bought
...
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By adding mail order to your business you really can increase sales without paying out
for further advertising because previous customers will now be able to buy again from
you, and will almost certainly start recommending you to their friends, colleagues,
and family and this in turn builds further sales
...
There’s nothing to stop you introducing similar schemes in your business
...
OFFER CUSTOMER REFERRAL INCENTIVES
The insurance business relies heavily on successfully targeting their existing satisfied
customers to introduce them to new customers, often in areas where previously they
have been unsuccessful
...
Usually a tempting incentive is offered, which could be anything from a pen to a gift
voucher or even a holiday
...
Encouraging referrals by offering incentives is a great way of building up
your customer base at a fraction of what it would cost using traditional
advertising methods
...
It’s easy to introduce referral schemes
All you have to do is ask your existing customers to recommend someone they know
to receive a copy of your latest brochure, sample product, newsletter etc, and as soon
as this nominated person starts shopping they will receive their free gift
...
Otherwise
your campaign runs the risk of suffering from ‘I’ll do it tomorrow’ syndrome
...
Of course there’s nothing to stop you then
re-running the offer at a later date when hopefully you will get another batch of
potential clients
...
Offer a desirable gift, but something that is not going to cost your business a
fortune
...
The advantage here is that not only are you getting new customers
referred to your business, but you are also encouraging existing customers to buy
again so they can use the gift voucher
...
Set a deadline for when the offer expires
...
Your aim is to get your customers
referring their friends to you within a certain period of time if they are to qualify
for their incentive
...
As soon as you get your new customers shopping with you offer them a similar
incentive to refer their friends and so on
...
Keep interest alive by varying your incentives
...
5
...
Points
are also awarded on future purchases and once a certain number of points have
been accumulated a larger incentive gift can be claimed
...
PUBLISH YOUR OWN NEWSLETTER
Newsletters are a great way of promoting your own products, keeping your customers
loyal and generating additional income for your business by either selling advertising
space or earning commission on selling others’ goods
...
(See Chapter 8 for more information
...
For example, I run a Top Tips For Gardeners
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newsletter via one of my websites, and I get as many would-be customers as
customers signing up
...
If you haven’t got a website
You don’t need to have a website to publish your own newsletter
...
This isn’t a problem in my gardening
business where I automatically get potential customers’ names and addresses when
they phone up asking me to go and give them a quote
...
Don’t despair – there’s a
simple way around this
...
Make sure also that you give a copy to anyone
who browses your stand
...
The easiest and most effective way of getting people to send you their details and
subscribe to your newsletter is to offer an incentive
...
Your competition
It is vital here that you have a worthwhile enough prize for people to want to enter so
give it some thought and be prepared to splash out a little
...
Give
your readers a question to answer
...
Make sure your cut-out coupon collects the following information
...
full name;
2
...
Also useful if you are to send them a card on
their birthday);
3
...
email address;
5
...
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Remember, the objective of running the competition is to get people to sign up for
your newsletter, so don’t forget to ask them to subscribe
...
I recommend you ask them to tick the box if they don’t want to receive your
newsletter because market research indicates that this is the most effective way of
getting people to agree to something
...
It’s up to you
...
This needn’t be the
case
...
For example, you could start your competition in spring and say, ‘Lucky winner to be
announced in the winter edition of this newsletter,’ which shouldn’t have any adverse
effect on entries
...
For my
gardening business I publish a seasonal newsletter using a software program on my
PC
...
Provided your
document is well laid out, easy to read and attractive then that’s fine
...
What makes a good newsletter?
There are two angles you must consider here
...
Your needs: to make this publication sell more of your products and services and
expand your customer client base
...
Your customer’s needs: they’ve got to get something from reading your newsletter
...
It’s vital the content of your newsletter is informative and interesting in a chatty sort
of way
...
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So you need to work on your content
...
For example, my Top Tips For Gardeners newsletter always includes something about
the flowers and plants that are in bloom at the time
...
I finish this piece by inviting my readers to contact me to arrange for our company to
come around and prepare their garden ready for the spring
...
Winter Warmer ^ Book your spring tidy up before 31January and we’ll give
you 10% off our normal rates
...
Note that I’ve created a sense of urgency by asking customers to book before 31
January
...
Some things you could include in your newsletter:
o
Any interesting history behind your products: how did your products get their
name? Where were they first sold? Anyone famous using these products? What’s
the most expensive one to ever have been sold?
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o
Other customers’ tips and advice
...
This works well with hobby businesses where there
is a natural sense of allegiance because everyone is interested in the same thing
...
If you’re planning to exhibit at a certain venue, let your
customers know in advance by way of your newsletter
...
o
Staff profiles
...
Especially if you’re offering a mail order service you could introduce
your clients to the person or people responsible for taking their orders
...
Tell your readers how to get the most out of what they’ve
bought
...
o
How to guides
...
Even
though the object of my gardening newsletter is to sell more of our products and
services, I like to include short garden guides
...
o
Now is the time to
...
now is the time to’ feature, especially if things have some sort of natural
deadline
...
’ Or, ‘You really only have two
weeks left to plant your onion sets if you want to have them in time for summer
salad days
...
You’re not printing a magazine or newspaper,
so keep it as short as possible
...
What about pictures?
If you’re publishing an online newsletter then you can include picture links in your
newsletter
...
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If you want to include pictures in your online newsletter then the best way is either to
write in some hyperlinks, which are links either to other websites or web pages, at end
of the newsletter, or tell your readers there are now new pictures on your website
...
I think it’s too
expensive and doesn’t really fit in with what’s normally expected of a newsletter
...
Discuss with them what you’re
looking for and what you hope to achieve by having a newsletter
...
But do try to include them in your business
...
Making it ‘sticky’
Good newsletters are sticky ones
...
There are a number of ways you can make your newsletter sticky:
o
Competitions
...
You print the lucky winner’s name and they have to contact you
within so many days to claim their prize
...
Invite your readers to advertise their items for sale in
your newsletter
...
o
Ongoing feature
...
Divide it up into,
say, four parts
...
Naming your publication
Just like when choosing the name for your business, spend a bit of time working on a
title for your newsletter
...
So I simply call it Top Tips
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For Gardeners
...
Finally!
Remember the objective of publishing your newsletter is twofold:
1
...
2
...
SEND A CARD
Another great way to ensure customer loyalty and boost sales is to send your clients
cards, which can include:
o
o
o
o
Christmas cards
Birthday cards
Postcards
Get well soon cards
Sending Christmas cards to all your customers can increase your sales by up to 20 per
cent
...
The results are often amazing and I
believe that not only do we continue to keep our customers by sending them cards
but we win lots of new business, too
...
This included asking for date of birth so
you’ve no excuse for not sending your clients a birthday card
...
Postcards
It might seem an unusual thing to send your customers, but postcards make great
inexpensive marketing tool for announcing special offers, end of line reductions etc
...
Other cards
Where you’re running a business where you get to know your customers and meet
them on a regular basis, such as a gardening business, you can send all sorts of other
cards including get well soon cards and congratulations cards
...
These
are the small, inexpensive touches that sets your business apart from the rest
...
Saying thank
you is one way of making sure your customers stay loyal to you and your
business
...
You don’t have to be an expert to be a successful salesperson
...
The most successful sales strategy in the world is simply to ask for the order
...
People buy benefits, not features
...
Objections are buying signals
...
A professional salesperson will recognise buying signals and work on them to
achieve a sale
...
Turbo-boost your business sales by taking credit and debit cards; offering mail
order; client referral schemes; publishing your own newsletter; and sending
customers, both existing and potential, cards
...
Selling – there really is nothing to fear
...
Unfortunately it’s an area often overlooked
...
Often both approaches
bring the same result
...
Why is marketing so important?
Having a successful marketing strategy for your business is like having a powerful
train driving customers through your doors
...
All too often
businesses concentrate their efforts on the sales function without really bothering
about marketing, which results in poor sales because customers aren’t coming to buy
...
Even if you have a large budget available, be forewarned that the
amount you spend on marketing your business does not necessarily equal the size of
your sales
...
Every year big businesses invest
millions of pounds training their telesales staff in the latest techniques for
telemarketing
...
Personally, I never buy anything over the
phone; even if it’s something that I’m interested in I will only decide if and when I see
written information including terms and conditions
...
After all, they will be sharing with you all the
expensive training they have been given
...
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WHAT YOU’LL LEARN FROM TELESALES EXECUTIVES
How to approach a cold sales telephone call
You’ll learn a lot from how they work the call so as to get through to the decision
maker
...
So listen to how they make their initial approach
...
They’ll have the name of who they want to speak to
...
?’
How to overcome common objections
The reason I urge you to tell them you’re not interested is because then you’ll learn
how to handle initial objections
...
The more objections you raise the better the lesson becomes
...
Coping with rejection
Whatever business you’re planning to start you’re going to have to learn to handle
rejection as you’re going to get it
...
When a professional telesales
executive calls you and you make it clear you don’t want whatever it is they’re selling
you, they won’t take it personally
...
’
Professionals will be unfailingly polite, respectful of your time and also will try to
leave the door open by saying something like, ‘Would you mind if I give you a call,
let’s say in a couple of months, to see if your situation has changed?’
If they sound nice and reasonable the chances are you’ll probably say yes
...
Why advertising doesn’t always work
Small businesses waste thousands of pounds annually on expensive advertising that
will never bring them a single customer
...
Advertising doesn’t work this way
...
The advertisement’s objective must be:
o
Specific
...
How are you going to work out how successful your ad is? One
way is to ask to customers replying to your ad to quote a specific reference
number or mention the ad itself to take advantage of a special offer
...
You must make sure your ad is going to reach your potential market
...
The key to success is to make sure the objective is achievable
...
For example, a common, and easily made, mistake is to use a small
advertisement to try to sell your products
...
So the objective for the advertisements we run for our Dutch bikes is to get people
motivated to get further information on our products
...
Rather than see your advertisement as simply a tool for selling your goods, instead use
it as a vehicle for bringing potential customers to either your telephone line or website
to find out more about your products and services
...
A WORD ABOUT ADVERTISING SALES EXECUTIVES
Beware, be very aware, that when someone phones you to sell you advertising space
their primary concern is to make a sale for their business not necessarily to generate
increased business for your company
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It’s
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expensive, but you agree to go ahead convinced that the investment is worth is
because your sales will rocket
...
Absolutely nothing happens – you fail to get even a single inquiry via your expensive
advertisement
...
It’s one that’s
happened to me in my business and from speaking to other entrepreneurs it’s
happened to them, too
...
I spent
considerable time on the phone with the sales executive discussing our
advertisement’s objective
...
Our first ad came and went with a dismal response
...
So I phoned and was told they never received it (although
they had received the covering letter, which was odd)
...
The next issue of the magazine arrived and our product had still not been
reviewed
...
When I phoned the magazine for an explanation I was told that the editor
did not think that our product was suitable for their readership
...
I pulled our advertisement immediately despite warnings from the sales
manager that we would be liable to pay for further ads as we had entered
into a contract
...
I cannot stress enough that the only thing an advertising executive is interested in is
their commission and their publication’s future
...
Don’t rely on anything they tell you and make sure that your products and
services are right for their magazine
...
My favourite method for promoting our businesses is using our websites
...
Here are my preferred shoestring offline marketing techniques
...
Classified advertisements
...
Press releases
...
Sponsorship
...
Media stunts
...
Make more use of your business cards
...
Join a local networking group
...
Use self-employed sales agents
...
Leaflet drops
...
Give talks to other businesses
...
Write for your favourite hobby magazines or create your own newsletter
...
My reasons are simply that some businesses will have to employ traditional
advertising methods to get started and bring potential customers through their doors
...
However, before rushing off to place your advertisements there are two very
important things you must get right
...
The publication must be suitable for your advertisement
...
The advertisement must be as powerful as a train in pulling customers through
your doors
...
She was right
...
Obviously had I given it more thought and really identified who
the magazine’s targeted readership was, I would have come to the same conclusions as
she did and not wasted our money
...
When considering a publication always get a copy of the magazine or newspaper
before placing your advertisement
...
If it doesn’t your message will fail to reach your target
audience
...
Phone the classified sales
department and ask them to send you a back issue and a media pack
...
o
When you receive your copy go through all the advertisements and ask yourself
if what you’re offering is the same as what is being advertised
...
Ignore what
the sales staff say
...
How much should you spend?
Rates are based upon a number of factors, which include how many copies are sold
monthly, quarterly or yearly, whether the magazine is a glossy colour affair or in more
of a newspaper format etc
...
My own experience has been that it’s far too tempting to place adverts in publications
which offer the best rates, while ignoring the key factor, which is do your customers
read this publication? If you’re sure that they do – having first worked through the
existing advertisements, then you need to work out an advertising budget
...
Don’t be surprised when you phone the advertising department of the publication to
be told that the attractive introductory offer in the publication isn’t the price you’ll
end up paying
...
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Advertorial
Whenever you do decide to go with a particular publication make sure to ask them to
run a small feature about you and your business
...
An advertorial is a great way of getting additional publicity for your business because
it’s your ad dressed up as a news story
...
Some marketing experts reckon that it can take customers as much as five exposures
to your message before they will consider buying what you’re offering
...
Anywhere between three and five seems to be the magic number
...
I have found that it usually takes about three months of advertising in a monthly
magazine before I see any return on my investment
...
When working out your budget try to come up with a six-month or annual
marketing budget
...
It’s so easy to get carried away
with bigger and better ads in the vain hope that this strategy will reap rewards
...
Work out a budget that you can comfortably afford ^ and stick to it
...
Five steps to writing a powerful classified advertisement:
1
...
3
...
5
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Create a killer headline
...
Call them to action
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Don’t try to sell them anything
Strange, but true
...
The primary objective of your advertisement should be to bring in enquiries and not
sales
...
Create a killer headline
Without it your advertisement is going nowhere
...
My feature was duly published and those I spoke to afterwards said they hadn’t seen
it
...
The reason? The headline
...
Your headline must grab the reader and make them want to read more
...
If your
product will only appeal to those interested in sailing then make it shout at sailors:
ATTENTION FRUSTRATED SAILORS
Or if you’re selling to gardeners with bad backs:
IS YOUR GARDEN BREAKING YOUR BACK?
And so on
...
Grab their attention and make them want to
read your ad
...
This is also true when it comes to your advertising
...
The way to do this is to write down all the benefits that someone would get if they
bought what you’re offering
...
The next step is to prioritise your benefits and decide which one of all them is the
most appealing
...
When you’ve got your powerful benefit it can follow your headline:
IS YOUR GARDEN BREAKING YOUR BACK?
Our catalogue is full of products specially designed
to take the hard work out of gardening
...
But they’ll put the magazine down intending to phone you later and then something
else will grab their attention, and fairly soon your ad will be part of pile of papers
bound for the recycling centre
...
Next time you watch television, listen to commercial radio or pick up a magazine,
listen out for the advertiser calling you to action
...
Many command you to pick up your phone right now
and find out how much money they can save you on your insurance renewal
...
The reason you do, is because they
have already told you the all-important what’s in it for you – cheaper car insurance, a
cheap holiday in the sun etc
...
Something
like:
Our catalogue is full of products specially designed to take the hard work out of
gardening
...
Create a sense of urgency
The response to your call to action can be greatly improved if you create a sense of
urgency as well
...
Remember that the primary objective of your advertisement is to bring customers
through your doors so create as much urgency as you can by offering a powerful timesensitive incentive
...
One will do so long as it’s powerful enough to pull them through the doors
...
Spend as much time as you can working on your classified advertisement
...
Keep the ‘What’s
in it for me?’ motivating factor at the forefront of everything you do
...
Don’t worry if you don’t get it right first time
...
Press releases
A press release is a marketing tool that is often overlooked by small business owners
and is still my favourite
...
Although obviously the greater your understanding and knowledge
of how to write your press releases the greater your chances of success
...
A SIMPLE, EFFECTIVE PRESS RELEASE
Every day newspaper editors, magazine editors and television producers are deluged
with press releases from businesses, politicians, entertainers and more, all trying to get
publicity for their interests
...
However, editors aren’t in the business of running free ads for anyone and they know
that if their publication, television or radio programme has even the slightest hint of
promoting products and services people will turn off in their droves
...
So to succeed in getting your business featured in their publications, your press
release must contain something that is newsworthy and not simply seen as promoting
your business
...
Although most local newspapers are pleased to run a small piece on a new business
opening in the area, you won’t find the glossy monthly magazines quite as
accommodating
...
But when contacting them you must be able to offer them a powerful benefit
for featuring your business
...
WHAT’S NEWSWORTHY ABOUT YOUR BUSINESS?
1
...
All news revolves around human interest
...
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Imagine for a moment that you’ve just found a new product that overcomes sea
sickness
...
So rather than saying ‘Hey, we’ve just found the perfect solution to curing
seasickness,’ you would announce that either you or someone you know who has
suffered from seasickness has finally found relief from this awful condition
...
2
...
Your previous career may well be a news story
on its own
...
People love to read about how others have changed their
lives, especially those who’ve swapped a high-flying career for something
completely different
...
Employment and local prosperity
...
Stories like these are sought after
...
4
...
With every hobby there is something that is either difficult
to get, or prohibitively expensive to do
...
Incredible as it may sound
many boat owners are now moving their boats abroad, away from UK marinas, as
berthing rates are far more affordable
...
Rather than
have a berth for your boat, it is dry stored at the marina when you’re not using it
...
Once you’ve finished it is then lifted and dry
stored again
...
Because the marina was offering an innovative way of reducing the cost of berthing,
the story was taken up in all the press including the local television news
...
Remember the key to success is looking for the
human-interest angle
...
It’s the‘What’s in it
for me?’angle you’re looking for
...
Many books will recommend you use a set format for your press release, I
recommend you don’t
...
A simple but effective press release is to write a letter to the editor
...
This is not to be scoffed at, as
this is usually the most read section in any publication
...
I
include a ‘call to action’ for the editor at the end of the letter asking them to contact
me for more information or to come and visit us for a coffee and a tour of what
we’re about
...
WHAT TO INCLUDE
1
...
2
...
3
...
4
...
5
...
The headline
Just like a classified ad, you will need to make it attention grabbing, but without
looking tacky and cheap
...
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Briefly how it started
It’s important to cover this, as often this is where the editor’s interest lies
...
The life-changing angle will appeal to more people than the fact
that the area is to get a new herb farm
...
This might be the
paragraph that gives the editor the news story he wants
...
Something like ‘Pick up your phone
now and I’ll tell you all about it,’ probably won’t work
...
CONTACTING OTHER MEDIA
Television and radio stations are always on the lookout for local and national news
stories
...
Don’t be afraid to contact your local TVor radio station
...
Approach TV and radio in same way you would a newspaper or magazine
...
You’re far more likely to get a positive response if you come across as friendly and
enthusiastic as opposed to trying to act like a large corporation
...
You could sponsor anything from a local football
team to building and maintaining a flower border or garden for a hospice or
children’s home
...
You needn’t just sponsor charities
...
Having a nice big sign on one of the roundabouts leading into your town or city is a
great way of promoting your business
...
Sponsorship is a win-win situation
...
Not only are we making a
difference and getting a great feel-good factor for doing so, we are also raising the
profile of our business locally
...
Contrary to the image of journalists portrayed in films where they’re constantly
running around searching out that all-important story, most journalists haven’t the
time or resources necessary to do this
...
When they find something they believe would be of interest to their publication’s
readers they then work on the story
...
Editors are aware of this and are
obviously keen to either have a different slant on local news stories, or to look for
something completely different
...
Let’s imagine for a moment that you’re planning to run walking holidays but are
finding that many of the rights of ways in your area have been blocked by local
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landowners
...
You could arrange for a local protest where you and a bunch of walking enthusiasts
set out to challenge the actions of the local landowners
...
The first thing you might achieve is to
open up public walks which should already be accessible to the public
...
There are all sorts of stunts you can arrange for your business to generate publicity
...
You’d be amazed at how quickly you can increase your sales if you
start using your business cards as a marketing tool as opposed to simply a piece of
information
...
DESIGNING YOUR BUSINESS CARD
The three deadly sins of the business card design are having:
o
o
o
blank spaces;
no sales message;
no call to action
...
OK? So what can you see? A blank piece of paper? Or a
powerful sales message?
I’m not a betting man, but I’d lay odds that the majority of people will be staring at a
blank piece of paper
...
If you were running commercial vehicles as part of your business you wouldn’t leave
one side of the vehicle without a sign, so why leave half your business card blank?
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Most people will have had their cards printed like this because this is the way the
printer does them
...
No sales message
Just like your classified advertisement, your business card should have a powerful sales
message
...
Remember that they need to be told what’s in it for them
...
And what better
place to do this than that great big blank space of the back of your business card?
Even something as simple as what I’ve written below is better than a blank space
...
Call to action
Now you’ve told them why they should visit your business you must call them to act,
otherwise your card will go into the bottom of their wallet, bin or coat pocket never
to be seen again
...
Phone us now for a friendly chat to see how we can help you
...
The sooner you get your business cards selling for you, as opposed to simply
providing information, the better
...
DISTRIBUTING YOUR CARD
You should never miss an opportunity to hand out your card
...
o
Get your business card on every notice board, window or wall where people
gather and wait
...
o
Whenever you meet a prospective customer don’t simply give them your card,
personalise it
...
o
Even if everyone knows about your business, it’s still worth giving friends and
relatives a quantity of your business cards so they can give them to their
colleagues and friends and put them up in their local barbers and so on
...
Groups generally work on the basis that you attend regular meetings, which can vary
from breakfast get togethers to evening meetings where you meet other business
owners and entrepreneurs just like you
...
For
example if you’re looking for funding your new business venture you could well find
someone at these events
...
ONLINE NETWORKING GROUPS
You can also network online by joining any of the online forums relating to your
hobby or entrepreneurial matters
...
Remember if you’re having problems with a certain aspect of your business, the
chances are others have experienced the same difficulties
...
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Online networking is an excellent way of both promoting your business
and getting that all-important support
...
You can employ a network of self-employed sales agents
...
Lots of products and service are marketed in this way, from boats to holidays to
books
...
Experience
Let’s imagine for a moment that your business is making dolls houses and
that each house retails at £100
...
The advantage to the sales agents is that they don’t have to buy your stock
...
When their customers enquire about these houses,
the sales agent will be able to answer all their questions because you will have
briefed/trained them in advance
...
Make sure that your commission structure is generous enough to be appealing while
still leaving you with a worthwhile profit margin
...
Another way is to advertise that
you are looking for sales agents on your website and point-of-sale material
...
In our businesses we hold a number of agents for a variety of products and
we also recruit our own sales agents to sell our courses
...
If they don’t sell your products, you don’t pay them anything
...
Provided you listen to what your agents are telling you, you can also get some very
useful and regular feedback from customers about how your products and services
can be improved
...
There are a number of options:
o
o
o
do it yourself;
employ someone to do it on your behalf;
have your leaflet included in an existing paper, for example your local property
paper or weekly advertiser
...
Personally I prefer to arrange and do it all ourselves rather than employ a company to
do it
...
DESIGNING YOUR LEAFLET
Your leaflet is crucial to your success
...
Why should anyone want to use your product or service?
o
A powerful benefit to potential customers for choosing you over your
competitors
...
It is vital that you establish your credibility
...
If you haven’t any qualifications then don’t worry
...
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o
Create a sense of urgency
...
Whatever
you offer, make sure it has a time limit
...
Never forget this crucial bit
...
o
Your full contact details
...
Even if you only include your name and a land-based telephone
number you are greatly increasing the odds that people will call you as you’re
providing them with information that the rogues will never give
...
If the only
contact detail you can provide is a mobile telephone number, then this type of
marketing isn’t for you
...
Try to make your leaflet as eye-catching and interesting as possible and always get it
printed by a professional
...
Shop around for a good printer and ask them if they offer a design
facility
...
As soon as you see
anything that resembles those awful clip-art animations then look elsewhere
...
DISTRIBUTING YOUR LEAFLETS
The benefit of leafleting is that you can target specific areas and even specific houses
...
Our local garage was unable to rectify it as were the other two garages I
took it to
...
We also undertake servicing
...
They told me not only had they heard of
the problem but repaired these faults on a regular basis
...
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This is an excellent example of targeted leaflet/card marketing, which got their
phones ringing every time
...
Remember the golden marketing rule – people buy benefits and not features
...
WHAT RESULTS WILL YOU GET?
We regularly undertake direct leafleting in our businesses and typically we get around
a 1 per cent reply rate
...
We always aim to distribute 5,000 leaflets in one marketing hit and this
generates approximately 50 sales calls, which we usually receive within around three
weeks of our campaign
...
So as I said earlier, we now organise,
motivate and manage our own direct marketing team
...
I’ve given talks to all sorts of local groups about gardening and garden design and
have always found them an excellent way of generating new customers
...
Even if those who attend your talk aren’t personally in the market for
your services they will tell their friends and relatives who may be, so it’s worth giving
everyone who attends your business card and a brochure or leaflet telling them more
about what you do
...
If you’re nervous about having to speak in public, don’t be
...
Whatever you do, don’t lose out on the
potential of this sort of marketing can do for your business simply because you are
nervous
...
My experience has been that people are wonderfully supportive,
hospitable and grateful for the time I’ve given to them and their organisations
...
Your library will also have a very useful folder containing the details of all local
groups that meet in the area
...
Either write, email or phone the contact and discuss
your idea with them
...
I believe it’s a win-win situation
...
I
also find that I also learn new things from them
...
But
it’s up to you
...
If in your business you’re doing something
different or unusual, then you should consider offering to write features for your
favourite hobby magazines
...
Whether it’s a landscape gardener
giving an account of how to lay the perfect lawn or a nursery owner discussing how
they rid plants of common pests – it’s all there
...
Although most magazines and newspapers pay their freelance writers and
contributors, I think that if you’re writing about your own business then you
should not charge
...
So don’t
look at it that you’re giving away your services free
...
The resulting
publicity will be more than just reward
...
I love boats and nothing grabs my interest more quickly than when my favourite
boating magazine visits a boat builder’s and we get to see first hand how a beautiful
craft is created from an idea on a piece of paper to a finished boat
...
A good website supported by a relatively
inexpensive, but carefully constructed, classified ad can be far more effective than a
large and expensive glossy ad
...
Work out a figure that covers you for a series of small classified advertisements,
website promotion, leaflets, business cards and any other point-of-sale material your
business will require and then stick rigidly to your budget
...
Lots of successful businesses are marketing on a shoestring
...
So don’t be afraid to go out and look for free publicity, hand out leaflets, put posters
up, give talks to groups, and build your own website
...
1
...
2
...
3
...
4
...
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5
...
A single ad is unlikely to give any worthwhile
return
...
Work out a marketing budget and stick to it
...
Never buy advertisements from cold-calling telesales executives
...
Make sure your advertisement is somewhere your target customer is visiting
...
I use the words shop window loosely
here as your ‘shop’ could be anything from a website to an ad in the small classifieds
of your favourite hobby magazine to a traditional bricks and mortar shop
...
Choosing the right venue to sell your goods is crucial to your success
...
Be exposed to your target market
The reason many businesses fail is not because there isn’t a demand for what they’re
selling, but because their products and services are not marketed at those who want
and need them
...
The business owners put an enormous amount
of time and effort into creating a very inviting shop which generated
immediate interest
...
Despite the initial interest, visitors to the shop were slow as few of the local
residents were interested in what the shop was selling
...
Unfortunately late-night drunks became a problem and frequently the shop
windows were broken by fighting and yobbish behaviour
...
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Sadly the business failed
...
Why did they
choose this area? Most likely because the rents here were far less than in the
more affluent areas of our town, and not only were the rents lower but the
retail area was far larger
...
We’ll look in a moment at what’s involved
in taking on a shop lease, but wherever you decide to locate your business you must
be sure that the products and services you’re going to offer have a fair chance of
generating not only enough to cover rent, rates, insurance etc, but also pay you and
give a profitable return
...
You’ll need to be
able to adapt to market changes either as they happen, or preferably to anticipate
them
...
Be secure and safe
In the case of the antiques shop, not only was the business located in the wrong area
but it was also exposed to frequent attacks
...
If you have shutters and security doors
where no one can see your window displays, you are losing out on potentially
valuable sales
...
Your business could include a
combination of these or just one:
o
o
o
o
o
o
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website;
space in another shop;
concession in a retail area;
direct marketing;
exhibition or trade fair;
hotel foyer;
D
o
o
o
o
o
o
ECIDING
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train station platform;
shops, cafe´s and kiosk;
boot sales or market stall;
shop;
local authority concession;
an existing business
...
Whatever
type of business you are planning to start a website can be a great and inexpensive way
of either selling your products or promoting your business
...
While this can be an ideal solution for some businesses it won’t suit everyone
...
Generally speaking the way these businesses are run is that you hire either a cabinet or
a space somewhere in the main shop where you display your goods, for which you
pay either a weekly or monthly rent
...
You
can rent your space for anything from a month to a year or beyond
...
Weekends are usually
the busiest times in these types of businesses and you would do well do run your own
stand/stall during these periods even though it may not be your turn
...
Advantages to renting a small space
o Rents are usually fairly low
...
o They can be profitable with the right goods
...
For example, you
can have a display area where people can take your brochure or card and order
your products online
...
o You often get more curious browsers than real buyers
...
o It is unsuitable for many businesses
...
CONCESSION IN A RETAIL AREA
An excellent way of selling your products is to take a concession either in a shopping
centre with a mobile kiosk or in another retail business
...
These businesses include
bespoke garden furniture companies, pet shops, camping and accessories shops, fish
shops, fencing businesses, cycle shops and so on
...
Another considerable benefit to your business is car parking
...
If your goods are heavy or bulky your customers will appreciate not
having the headache of stopping outside a high street shop where there is
no parking and every likelihood of getting a ticket
...
Again the main advantage here is you’ll
have an instant customer base and won’t have to shell out on advertisements telling
everyone where you are
...
However I think that instant savings on things like business rates, insurance, water
rates, advertising etc, combined with the fact that you will have access to a large and
ready-made customer base, can make this a very worthwhile option
...
By this I mean purchasing specialist mail order lists and then
writing direct to your target market
...
If
you don’t believe me then over the next few weeks start taking a closer look at your
junk mail
...
If it wasn’t worth doing do you think these highly successful businesses would bother?
How to run your own direct marketing campaign
You will need to obtain an up-to-date mailing list that you can work from
...
Most companies will offer a service where you can buy a printed mailing list or preprinted mailing list labels with the names and addresses already on
...
Remember that your business will not be the only
business to have purchased this mailing list, which may mean that your target market
becomes familiar, and understandably fatigued, with seeing the same label
...
Before purchasing a mailing list make sure:
o
You are buying from a reputable source
...
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The list is up to date
...
Ask the company representative to explain not only how they compile their lists
but also how up to date they are
...
You will need to buy in sufficiently large quantities to make your
campaign work
...
Thus if you’re sending out 1,000 letters you
can expect 10 positive replies
...
Although it can be expensive to run a direct marketing campaign it can be
well worth it
...
Exhibitions and shows
Exhibitions are usually open to the public and vary in size
...
However, the potential
suitability of a show should not be judged solely on how many visitors it attracts
...
Trade fairs
Trade fairs differ to shows in that they are only open to the trade
...
If you’re looking for agents to sell your products then a trade fair is the
place to find them
...
Where can you find them?
There are literally hundreds of exhibitions and trade fairs going on throughout the
year
...
If you’re really stuck to find an exhibition then phone up one of the
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distributors or manufacturers of a product you buy and ask them they know of any
trade fairs or exhibitions
...
Smaller shows usually don’t fill up as quickly and it’s not too costly to rent
a stand
...
I know of a number of small, independent boat builders who exhibit at two
annual boat shows and fill their order books for the following year, which justifies the
relatively high price of having a stand there
...
HOTEL FOYER
Depending on your products, hotel foyers can offer excellent potential for a variety of
hobby businesses where you can sell souvenirs, crystals, pictures, paintings, craft
items, local walking excursions, cycle hire, tours etc
...
How to set it up
o Draw up a list of potentially suitable hotels in your area
...
o
Go through your list and identify the hotel that you would most like to trade
from and then the next one and so on until you have a numbered list
...
Do not mention at this time
what you are looking to do
...
o
Draft a suitable query letter, which must highlight the benefits to the hotel of
agreeing to allow you have a concession in their foyer
...
’
o
Suggest either paying them a rent or commission on your turnover
...
If these are part of a hotel
group then you will need to write to the group’s chief executive in the first
instance
...
o
Make your follow-up phone calls and try to gauge whether or not the initial
hotels are interested
...
Much will depend on what you’re selling as to how suitable a railway station would
be as a location
...
There are a number of ways you could approach setting up your business
...
How to go about getting a site
First find a railway station that would be suitable
...
For example, most train companies are awash with offers from
entrepreneurs to set up food and cafe´ businesses
...
She did go on to say that they would always be pleased to hear
from anyone with ideas other than food and drinks
...
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CAFE¤ , SHOP OR KIOSK
If your business involves creating your own paintings, pictures, crafts, guide books
etc, then as well as marketing them online you could also offer them on a sale-orreturn basis to local cafe´s, shops and kiosks
...
Greetings card manufacturers
are masters of this form of marketing
...
o
Draw up a list of prospective retailers
...
Instead you can simply cross their name off your list and continue with
the next
...
o
Prepare a price list for your products
...
o
Set aside some time to visit all your prospects
...
Instead of simply saying that you’ll visit all these shops in the next
few weeks, set aside a few days and devote this time entirely to visiting your
prospects
...
Making your presentation
If you haven’t already done this sort of selling it can be somewhat daunting
...
I’d advise you don’t try to phone and make an appointment as it’s unlikely
they’ll agree to one
...
If they’re not, fine
...
When you walk into a card shop, cafe´ or kiosk, ask to speak to the manager
...
) As soon as you meet the manager/owner introduce yourself
...
It’s important you use the SOR (sale or return) method – this is standard practice for
selling such things as cards, photos, paintings, guide books etc
...
The benefit to the retailer is that there is absolutely no outlay on additional stock
...
All you pay is commission
...
Some will settle for less and others might want more so be
prepared to negotiate
...
Although many
retailers compete with each other much of this is done on a friendly basis with many
traders knowing each other
...
If you find
when making your presentation that one retailer will only accept your products on
the basis of getting an unreasonable commission, then politely walk away
...
Collecting your money and restocking
You’ll need to work out a cycle of when to go and restock your product and collect
what’s owing to you
...
As you work through your round you will find that some retailers will already have
done a stocktake and have either a cheque or cash ready for you, while others will be
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in state of complete chaos and might even say they can’t pay you today as they haven’t
enough money in the till or some other excuse, which is why it’s so important to have
the agreed date entered on your original stock sheet
...
Don’t get angry or demanding as there may actually be a genuine reason why the
retailer can’t pay you
...
My advice would be to check your stock and replenish where necessary and then
agree another date to return
...
If the amount that you are owed is large then
you should seek to recover your money via the small claims court or by employing a
specialist debt recovery firm
...
There will be lots of
other companies vying for floor and shelf space who will employ all sorts of
techniques to make sure their goods are the most prominently displayed
...
It won’t be the retailer’s fault, it will be because other companies employ
merchandisers whose job it is to make sure their products stay at the front and others
as much out of sight as possible
...
Hopefully the locations you’ve chosen aren’t too far from
where you live and you can pay regular visits to your retail outlets
...
As you live locally you will be able visit more regularly and
thus win the battle
...
Consider providing your own display stands
It might be worth your while investing in display stands for your products
...
Check the Internet for
suitable suppliers and make up some advertising logos to go with them
...
Just like any other outlet or venue you will have to do your research prior to
committing to setting up your stall or stand
...
Remember that most of them will
be on at the same time, usually Saturday/Sunday mornings
...
Assess each one and make sure you look closely at the people
who are walking around
...
If they are, great
...
If you think your products or produce aren’t suitable
then don’t despair
...
LOCAL AUTHORITY CONCESSIONS
Your local council may provide the solution of where to base your business
...
There are a number of way of obtaining a concession:
o
o
o
Bid on an existing tender when it comes up for renewal
...
Suggest a concession by putting together a proposal
...
Usually these concessions are advertised in your local newspaper under the public
notices section
...
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Most concessions work on the following basis:
1
...
2
...
The pack contains
information on the concession that is being offered, including any special
requirements
...
You will also be informed of the date by which the council must receive your
written tender bid
...
3
...
4
...
5
...
This decision is then placed before the relevant council committee for final
approval and the successful party is notified
...
The final decision will be made on
number of factors including:
o
Performance of the previous tenant and whether or not they are bidding
...
o
Experience of running the type of business that is on offer
...
o
The rent being offered
...
Unless you’re already running the concession you won’t really know how much to
offer in rent
...
Purchase an existing concession
Every so often concessions come for sale
...
A disadvantage is that even though you have purchased the business you will still have to
submit a tender in the same way as everyone else when your concession term runs out
...
It’s a
good idea to do your own research in addition to the reasons given in any sales
particulars
...
If this the case do you really want to buy something that already has a
poor relationship with the landlords?
As with purchasing any business, you should always employ professional help
including a solicitor and an accountant
...
Due diligence is a legal term
which means having the books and trading claims made by the current owner
checked
...
Suggest a concession
Another way to get a council concession, as we did with our cycle hire business, is to
suggest your idea to the council
...
All you need to do is convince the council that
the business you are proposing would be of benefit to the public and hopefully
improve the area
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o
Have a clear idea of the type of business you are proposing to run
...
So when we came to meet the officers from the
council we knew exactly the type of business we were going to set up and were
confident with our business plan
...
Therefore make sure you have at least two powerful ‘what’s in it for them’
benefits before you make your initial approach
...
So you must be patient
...
In my experience the people you will be
dealing with – the council’s concession officers – will be just as eager as you to see
your business up and running and benefitting the local community
...
Be flexible
In the event that your proposal is turned down don’t be afraid to ask why
...
Don’t give up
This is true with everything you do
...
Whenever you’re tempted to give up, take a small break and clear your head
of negative thoughts, get on your bike and go for it again
...
WHY DO BUSINESSES COME UP FOR SALE?
It’s a common misconception that the only reason businesses come up for sale is
because they are doing badly
...
Retirement and ill-health force many otherwise profitable
businesses to be sold
...
So there can be a
whole range of reasons for businesses coming on the market
...
Summary
1
...
2
...
3
...
Don’t be afraid to investigate these possibilities
...
Many local authorities offer retail concessions, which can offer attractive prospects
in terms of low rents and prominent positions
...
Beware of shark landlords
...
Never underestimate how
much this could cost you
...
A high street shop isn’t the only option available to you
...
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YOUR BUSINESS ON THE WORLD WIDE WEB
The Internet offers unlimited potential for home-based entrepreneurs
...
Where else can you launch a worldwide business for less than the price of a month’s
advertising in your favourite magazine?
But despite the opportunities, the Internet is awash with global business failures
...
o
Poorly-designed websites that make the business look amateurish and give the
impression of being run from the entrepreneur’s spare bedroom
...
So what can you do to ensure that your website does what you want it to?
To answer this question you need to ask yourself What’s your objective in having a
website?
o
Do you want a site that solely promotes your business and gives information
about the services you offer?
o
Or do you want a website that sells your products online?
o
Or a combination of sales and promotion?
Before you go any further with your business website you need to be clear about your
objectives
...
The reality is that bringing customers to your
website can be a full-time task
...
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Make no mistake about it – the Internet is cut-throat and there is no place for halfmeasures, poorly-designed web pages or sites that don’t take credit cards
...
Marketing your website
...
Creating a website for your business
As I said earlier, before you go any further and even attempt to build your own site or
commission someone to do it for you make sure that you have clearly identified your
objective in having your own website
...
For example, my businesses include a gardening business, cycle shop and boat hire
...
My primary objective in having a site for the gardening business is to promote my
main gardening business, which is maintenance and landscaping work
...
The site’s primary objective is to get people to contact us as opposed to selling them
anything
...
The process of turning those inquiries into actual orders is done offline
when I go and visit prospective clients
...
The objective differs entirely from that of our gardening business, because not only
do we want our website to be a marketing tool for our business, we also want to sell
our products online
...
Write down now what is your site’s main objective
...
Personally I prefer to build my own websites for the simple reason that I can update
them whenever I like without having to pay fees to a web designer
...
The disadvantages are:
o
unless you do it properly it can look amateurish and destroy your business’s
credibility;
o
it can be time consuming;
o
you need to know what you’re doing and be computer literate
...
For example, most template websites are simply a matter of pointing at a
menu and clicking the feature you want, then adding the text in the boxes
...
Most sites offer a free trial where you can sign
up for 24 hours and try out the templates before committing yourself
...
Most of these sites also offer to register your chosen domain name for a small fee,
which is often included in the price of the hosting
...
Otherwise you may find they
will charge you a fortune to transfer your domain name to another competitor
...
The disadvantage is that you will still need to pay a hosting company to host your site
and you will also need to register your name
...
The chances of them staying in, let alone buying from a site that clearly isn’t
what it says it is, is highly unlikely
...
Visitor friendly
It’s amazing how website owners think that visitors to their site want to be
bombarded by music or other silly gimmicks like annoying things flying around the
screen and getting in the way of seeing what the site has to offer
...
Most work places in the
country now have Internet access and I know from previous experience working in a
large office that employees often spend time surfing the net when they should be
doing other things
...
Once they’re gone, that’s it
...
Spend time looking at as many websites as you can
...
When you feel you have exhausted your search go back through
them and start pruning your list
...
I’m not suggesting you copy or mimic other people’s sites but get your ideas for
colour schemes and navigation structures from these
...
This isn’t because they are trying to clone their competitors’ sites, but because certain
colour schemes work better than others
...
However there are certain businesses
where the investment in hiring a company to design your website is well worth it
...
The key to running any successful online business is to make it as easy
as possible for your customers to spend their money on your site
...
Imagine walking into to a high street travel agent and making an enquiry only to be
told they’ll get back to you sometime in the future
...
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It’s the same online
...
You can download brochures, prices lists, buy goods, book holidays and
flights all at the click of a button
...
Where do you find a designer?
I regularly get emails and telephone calls from companies trying to sell me web
design
Title: Start your on business
Description: Friends, in this you will learn how a business is done and what problems can we face in it, by improving all this, you can grow a good business.
Description: Friends, in this you will learn how a business is done and what problems can we face in it, by improving all this, you can grow a good business.